Posted 9 months ago | by @devadmin
The Treasury Department of the United Kingdom (UK) under Chancellor of the Exchequer Rishi Sunak has stated that stablecoins and central bank digital currencies (CBDCs) have the attention of the U.K and regulators are currently drafting up impending regulations.
In a statement issued Monday, the U.K. Treasury said it would put forward proposals for regulating “relevant stablecoin initiatives” to ensure they are held to the same standard as rival payment methods.
“New technologies such as stablecoins — privately-issued digital currencies — could transform the way people store and exchange their money, making payments cheaper and faster,” the announcement read.
Sunak tweeted that the Treasury would “publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.”
We’ll publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.— Rishi Sunak (@RishiSunak) November 9, 2020
And the @bankofengland & Treasury are considering if central banks can issue their own digital currencies, as a complement to cash. pic.twitter.com/k5hbVT8R5X
The chancellor also encouraged the work to be carried out jointly by the Treasury and the Bank of England to determine “whether and how central banks can issue their own digital currencies as a complement to cash.” Nikhil Rathi, chief executive of the U.K.’s Financial Conduct Authority, said the regulator would continue to work with the government to deliver the plans outlined by the Treasury, including to “encourage responsible innovation in finance.”
Sunak said he hopes the U.K.’s financial services will lead “the global conversation on new technologies like stablecoins and central bank digital currencies.”
“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial center. […] Our plans will ensure the UK moves forward as an open, attractive and well-regulated market.”
While details of the plans are few and far lacking infromation, the stablecoin proposals referred to may be the beginning of discussions for govenrments worldwide on stablecoins and CBDCs. Although the isn’t the first country to propose CBDCs and stablecoin regulation, it would be seen as one of the most prominent to do so, which could lead to European countries surrounding the recent member of the European Union (EU), adopting similiar policies.
In fact, in August earlier this year, the ECB (European Central Bank) released a paper discussing regulatory measures for stablecoins. In that report, the ECB stressed existing uncertainties in governance and regulatory treatment of stablecoins noting four major types — tokenized funds, off-chain collateralized stablecoins, on-chain collateralized stablecoins and algorithmic stablecoins, Cointelegraph reported.
Bitboy Crypto previously reported that Lebanon is getting ready to roll out a Central Bank Digital Currency some time next year. All of these moves by governments are a further step towards digitizing our world and a reminder to all of us that cryptocurrency and its underlying technology blockchain, is becoming adopted mainstream. For more on the digitalization revolution happening before our very eyes check out the interview that Bitboy Crypto did with music artist, entertainer, philaphropist and entreprenur Akon below.
Bitcoin is currently trading at [FIAT: $15,397.07] UP +0.4% in the last 24 hours according to Coingecko at the time of this report.