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U.K. Government Planning to Adopt Stablecoins as Legal Tender As Chancellor of the Exchequer says “It’s My Ambition To Make UK Global Hub For Crypto Assets Technology”
The United Kingdom has disclosed several crypto-friendly efforts that will place the region at the cutting edge of its technology.
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.”
At the Innovate Finance Global Summit today, John Glen, Economic Secretary to the HM Treasury, said that the government is seeking to adopt stablecoins as a legal tender.
UK Maps Out Multiple Crypto Initiatives
According to a press release shared by HM Treasury, the department responsible for developing and executing the government’s public finance policy, stablecoins will be brought under the existing regulatory framework to facilitate their adoption in payments.
HM Treasury also noted that it is also planning to foster business innovation by legislating a financial market infrastructure sandbox.
The department added that a working group chaired by the Economic Secretary will be established to work closely with the crypto industry to understand better ways to regulate the nascent asset class.
Rishi Sunak, Chancellor of HM Treasury, has commissioned and directed the Royal Mint to develop a non-fungible token (NFT) by summer 2022.
The NFT will be regarded as an emblem of the forward-looking approach the U.K. government is determined to take with respect to cryptos.
Commenting on the development, the Chancellor of HM Treasury noted that it has been his ambition to make the United Kingdom a hub for the global cryptocurrency industry.
He said the measures developed for its cryptocurrency industry will give related businesses the confidence to invest and thrive in the United Kingdom.
“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,” Sunak added.
Reason for Stablecoin Adoption
The move to regulate stablecoins will enable the government to establish certain conditions for issuers and other service providers.
The conditions will guarantee financial stability and high regulatory standards to promote the safety and reliability of stablecoins usage within the United Kingdom.
Stablecoins are cryptocurrencies backed by stable assets like U.S. dollars. In recent times, stablecoins adoption has skyrocketed because unlike regular cryptocurrencies, they do not suffer massive price fluctuations.