The United Kingdom government has announced plans to regulate specific cryptocurrencies within a larger plan to establish an international hub for digital payment.
The popularity of cryptocurrency has exploded with officials across the globe are in a frenzy to determine how they can regulate them, with the concern that they could undermine the stability of traditional financial markets and harm consumers.
The U.K. Treasury is considering Stablecoins as an option for regular payment. After extensive discussions with various organizations, individuals, and universities, they have come to the same conclusion. In this regard, they plan to change the payment system and legislation on electronic money.
As stablecoins become a viable payment option in the U.K. and the U.S., the use of cryptocurrency will increase significantly.
Stablecoins are cryptocurrencies backed by fiat assets or gold to keep the price equal to a Fiat currency. They are considered an ideal means of payment as these cryptocurrencies do not have a significant fluctuation.
The U.K. Treasury Head, Rishi Sunak, stated that his goal is to create the U.K. as the world’s hub in the field of crypto. While doing this, the country’s financial services sector should be at the top of this. Crypto lending may also be an essential aspect in the U.K. shortly. This is since the economic director of the Treasury is looking into making it possible for the lending system to be integrated into the nation’s tax system.
In December, the deputy Bank of England governor stated that, while around 0.1 percent of U.K. assets were stored in digital assets, this percentage is rapidly growing.
Furthermore, the Treasury is working with The Royal Mint to develop NFTs (Non-fungible tokens). The country’s financial services minister John Glen stated recently that the ministry has a detailed plan to harness the potential of blockchain technology and build a world-class crypto ecosystem.
Collectively, major countries are acknowledging the massive potential of blockchain technology and moving for a better regulatory framework.
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What are Stablecoins?
Stablecoins are cryptocurrencies backed by traditional financial assets to avoid any fluctuations.