The UK seems to make space for stablecoins and the central bank digital currency (CBDC) as well. The UK Treasury Department has recently announced its drafting proposal that is meant to regulate stablecoins. Along with stablecoins, it is also paying attention to researching CBDC as an alternative.
Rishi Sunak, Chancellor at the UK Treasury Department, revealed this through a public announcement on November 09. He believes:
”New technologies such as stablecoins – privately-issued digital currencies – could transform the way people store and exchange their money, making payments cheaper and faster.”
UK Treasury Department Aims Stablecoins Follows Other Payment Methods Standards
This announcement of the drafting proposal has come right after the completion of final negotiations between the European Union and the UK about the post-Brexit trade deal. According to the Chancellor of the UK Treasury Department, the financial services sector of the country is now moving towards a new chapter with stablecoins regulation and CBDC.
Moreover, it is also revealed that the UK Treasury Department is aiming that stablecoins will have to follow the standards of other payment methods. Along with this, the department and the central bank of the country are also researching CBDC. They are looking at how the central bank will be able to issue CBDC, and how it will act as an alternative to cash.
Regulatory Implications of Stablecoin Emerges as Hot Topic
As Facebook is preparing the launch of its own digital currency Libra, it could be seen that the regulatory implications of the stable coin are a hot topic for quite some time now. European lawmakers are looking for strict and clear regulations for private stablecoins which also concerns consumer protection. Along with this, the UK Treasury Department Chancellor has mentioned that stablecoins must go through the same standards as that of existing payment firms.