On Monday (April 4), the UK government’s finance ministry announced “moves that will see stablecoins recognised as a valid form of payment as part of wider plans to make Britain a global hub for cryptoasset technology and investment.”
Her Majesty’s Treasury (HM Treasury), also known as the Exchequer or the Treasury, is “the department of the Government of the United Kingdom responsible for developing and executing the government’s public finance policy and economic policy.”
According to HM Treasury’s press release, stablecoins are to be “brought within regulation paving their way for use in the UK as a recognised form of payment.” Other measures designed to “make the UK a global hub for cryptoasset technology and investment” include “legislating for a ‘financial market infrastructure sandbox’ to help firms innovate, an FCA-led ‘CryptoSprint’, working with the Royal Mint on an NFT, and an engagement group to work more closely with industry.”
The government’s NFT is expected to be released this summer.
Chancellor of the Exchequer, Rishi Sunak said:
“It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country. We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term. This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.“
The press release went on to say that the UK government “intends to legislate to bring stablecoins – where used as a means of payment – within the payments regulatory perimeter, creating conditions for stablecoins issuers and service providers to operate and invest in the UK.” The government wants to “ensure financial stability and high regulatory standards so that these new technologies can ultimately be used both reliably and safely.”
Earlier today, in his speech at the Innovate Finance Global Summit, John Glen, Economic Secretary to the Treasury, announced that “the UK will proactively explore the potentially transformative benefits of Distributed Ledger Technology (DLT) in UK financial markets, which enables data to be synchronized and shared in a decentralised way to potentially achieve greater efficiency, transparency and resilience.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.