A few years ago, digital assets were subjected to tremendous government hate and hostility. The non-volatile nature of stablecoins, however, seemed to have attracted regulators. Since digitization began in full swing, governments have been exploring the development of the digital currency of the central bank, most commonly known as the CBDC. Though China has been the fastest in the development of the CBDC, other countries have been caught up in the race. The UK seems to be the latest one to take a big step in that direction.
UK To Probe Stablecoins And CBDC
The United Kingdom’s Treasury Department seems to be serious about digitalization as it yearns to put into place regulations for the same. A recent article from the UK Treasury revealed that country was steering towards revamping the existing financial sector of the country. The Chancellor of the UK Treasury, Rishi Sunak explained that the Treasury would put forth necessary initiatives pertaining to stablecoins in order to make sure it is at par with the already established payment methods.
UK’s departure from the EU created quite a buzz and the Treasury views it as an opportunity to formulate a new chapter in the history of financial services in the country. Sunak added,
“By taking as many equivalence decisions as we can in the absence of clarity from the EU, we’re doing what’s right for the UK and providing firms with certainty and stability. Our plans will ensure the UK moves forward as an open, attractive and well-regulated market, and continues to lead the world in pioneering new technologies and shifting finance towards a net zero future.”
Sunak, also took to Twitter to reveal that the country would soon publish a consultation in aid of new and privately-issued currencies. While the UK’s latest move reveals that the country has been welcoming newly issued stablecoins, the European Union had revealed contrasting thoughts about the same. The EU in a recent meeting revealed that no other private organization apart from the ECB was to issue stablecoins.
Furthermore, with regard to CBDC, the Chancellor revealed that the Bank of England and the Treasury were contemplating allowing central banks to issue their native digital assets as a counterpart to cash.
