United Kingdom Treasury to Consider Launching GBP Stablecoin

Alongside its interest in increasing crypto adoption in its region, the United Kingdom is now planning to launch its own stablecoin – a digital pound, in response to Andrew Griffith, an economic secretary to the UK Treasury. This follows the country’s commitment to becoming the world’s crypto hub.

With the UK increasing crypto adoption, the launch of a stablecoin appears to be an effort to further boost the adoption of crypto within the region. Andrew Griffith stated that the UK government has long been considering the establishment of a “regime for the wholesale use, for payment purposes, of stablecoins.”

United Kingdom’s GBP Stablecoin On Its Way?

Based on BBC, the launch of the UK GBP-backed stablecoin could also be coming before expected, as Griffith told the Treasury Select Committee that public consultation on the attributes of a digital pound could be launched in the approaching weeks. 

Though not all countries within the globe have their currency-backed stablecoin, entities reminiscent of Central banks across the continent have been working on and exploring respective digital currencies.

Griffith said to the committee:

“It is true to hunt to embrace potentially disruptive technologies, particularly when we’ve got such a powerful fintech and financial sector.”

Based on Griffith, he would love to offer a likelihood to “potentially disruptive game-changing technology that may challenge but in addition turbocharge all of those [financial] industries.”

The Intimidating Hold Up

A part of the consideration that appears to be discouraging the regulators from looking into stablecoin is consumer protection. With the crypto winter force having massive impacts on various digital assets, concerns about whether any cryptocurrency can genuinely be considered stable have been raised in curiosity and for cover.  

In consequence, the report mentioned that there could be a radical public consultation on Britain’s first general regulatory approach to crypto assets — mainly within the sector that concerns consumer protection which has come under scrutiny in recent weeks.

“However the consultation will form a part of a research and exploration phase and can help each the Bank of England and the federal government develop the plans over the following couple of years,” said Griffith.

He added that with regards to regulating crypto, being right is more critical than being first. “Given the UK’s strong financial popularity, it’ll be an extended lead-time activity.”

At the top of the note, Europe has proposed the world’s first comprehensive algorithm for regulating crypto markets. This proposal is alleged to receive finalized approval in the approaching weeks and are available into effect by next yr.

Griffith concluded that the UK rules could possibly be extensive and that they would come with decentralized finance where everyone would profit from greater transparency. A minimum of six roundtables will probably be made with firms within the crypto industry to introduce them to regulators and decision-makers.

BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Meanwhile, the crypto industry still appears to be in disbelief as Bitcoin finally crossed the $17,000 benchmark after some time. Altcoins reminiscent of Cardano (ADA) and Solana (SOL) have also made significant rallies to the upside over the previous few days.

Featured image from Unsplash, Chart from TradingView.com

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