UK to Propose Regulatory Protocols for Stablecoins
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The government of the UK has declared incoming regulations for stable coins currency. It has also announced the ongoing research regarding CBDC.
The Uk’s Treasury Department has disclosed that the central bank is carrying research on digital currencies as a way of alternative currency. Meanwhile, private stablecoins will be regulated.
Rishi Sunak, Treasury Chancellor, stated the regulatory proposal along with the other goals for the country’s financial sector.
“New technologies such as Stablecoin – privately-issued digital currencies – could transform the way people store and exchange their money, making payments cheaper and faster. We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial center […] Our plans will ensure the UK moves forward as an open, attractive and well-regulated market.”
Sunak also hopes that the global shift towards technologies like digital currency and digital banking will be enabled by the UK’s financial service sector.
However, the details are a bit hazy, but the announcement states that the guidelines will be drafted that will require Stablecoin to follow the same regulations as other payment methods do.
Both the UK’s central bank and the Department of treasury are working on CBDC research. The chancellor Sunak welcomes the efforts of both the departments “ whether and how central banks can issue their own digital currencies as a complement to cash.”
The requirement of regulations related to stable tokens has been quite a concern as Facebook announced the launch of its digital currency Libra in 2019.
Europ’s lawmakers have asked to make strict and clear regulatory guidelines regarding Stablecoins if they are to exist in their jurisdiction. They highlighted the concerns related to the monetary sector and the protection of the consumer.
In comparison, the UK’s Chancellor of treasury has made a far better assessment of the increasing digital currency sector.
We’ll publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.
And the @bankofengland & Treasury are considering if central banks can issue their own digital currencies, as a complement to cash. pic.twitter.com/k5hbVT8R5X
— Rishi Sunak (@RishiSunak) November 9, 2020
