Stablecoins to be Recognised in Britain

13 Apr

Introduction

The government launched a consultation on cryptoassets and stablecoins last year and has now published its response setting out the next steps.

As part of wider plans to make Britain a global hub for cryptoasset technology and investment, the government has today announced moves that will see stablecoins recognised as a valid form of payment.

What are Stablecoins?

Stablecoins are a form of cryptoasset that are typically pegged to a fiat currency (such as the dollar) and are intended to maintain a stable value. With appropriate regulation, they could provide a more efficient means of payment and widen consumer choice.

What is the government's plan?

The government has also announced that the UK will proactively explore the potentially transformative benefits of Distributed Ledger Technology (DLT) in UK financial markets, which enables data to be synchronized and shared in a decentralised way to potentially achieve greater efficiency, transparency and resilience.

In announcing the move, Rishi Sunak stated “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.”

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