UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective

UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective  0

The U.K. is mulling over launching a digital pound as it remains committed to becoming a cryptocurrency hub, a government representative has indicated. British authorities should also regulate payments with stablecoins, according to the official.

United Kingdom Prepares to Begin Consultation on Digital Pound Currency

The executive power in London is considering the introduction a digital version of the national currency, Economic Secretary to the Treasury Andrew Griffith told lawmakers, the BBC reported. A public consultation on the attributes of a digital pound would be launched in the coming weeks, he said, speaking to the parliamentary Treasury Select Committee. Quoted by Reuters, he also emphasized:

The consultation is going to say this is an if and not a when. We are not fully into the inevitability of doing this.

A digital pound raises many public policy issues and the government has to “get them right,” Griffith stated. He addressed concerns that a state-backed coin could erode privacy, insisting that its design would not allow the authorities to track individual transactions beyond measures targeting crime like money laundering.

Griffith further elaborated that the first use case for a central bank digital currency (CBDC) issued by the Bank of England would likely be in wholesale settlements but admitted that a privately issued, fiat-backed stablecoin “would probably get there first.”

“I want to see us establish a regime, and this is within the FSMB, for the wholesale use for payment purposes of stablecoins,” the minister added referring to the Financial Services and Markets Bill, which is currently being debated in the British Parliament.

UK May Adopt Broader Crypto Regulations Than the EU

Andrew Griffith also revealed that another consultation will be initiated on the U.K.’s regulatory approach toward crypto assets in general. While the EU has already agreed on a set of comprehensive rules for the market expected to come into force in 2024, the minister pointed out that the U.K. regulations could be even broader and include decentralized finance.

“We want the right regime, operated in the right way, that has the right balances in it,” he told the members of the committee while vowing to hold multiple roundtables with industry participants as part of the discussions.

Andrew Griffith’s statements come after last year’s slump in the valuations of major cryptocurrencies like bitcoin and the following the collapse of large market players such as crypto exchange FTX. Amid an ongoing crypto winter, consumer protection in the space has come under scrutiny, the reports noted.

Tags in this story CBDC, Crypto, crypto regulations, Cryptocurrencies, Cryptocurrency, Digital Currency, digital pound, Government, minister, Regulations, rules, secretary, Stablecoins, Treasury, U.K., uk

Do you expect the U.K. to develop and issue a digital pound? Share your thoughts on the subject in the comments section below.

UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective  1 Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective  2 Bank of Russia Outlines Payment Models With Digital Ruble, Other CBDCs FINANCE | 1 day ago UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective  3 Cryptocurrency Rose Ranks in Popularity as Investment Option in Chile in 2022 FINANCE | 2 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons

Previous article

Ex-Coinbase Manager’s Brother Sentenced to Prison in Crypto Insider Trading Case

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimerShow comments

More Popular News

In Case You Missed It

UK Treasury Considers Digital Pound, Maintains Crypto Hub Objective  4

SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale

Grayscale Investments’ CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is ‘a Matter of When and Not … read more.

Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Economist Predicts the Fed’s Response to Inflation Will Push Crypto Higher

Source

Updated: 01/12/2023 — 06:00

Leave a Reply

Your email address will not be published. Required fields are marked *

Btc news © 2021 Frontier Theme