UK Government Unveils Plan To Exploit Potential Of Cryptocurrency

UK Government Has Unveiled Plans To Turn Nation Into A Global Cryptoasset Technology Hub

UK Government Unveils Plan To Exploit Potential Of Cryptocurrency

On April 4, the United Kingdom unveiled a detailed strategy to harness the power of cryptocurrency assets and blockchain technology to ease the process of making payments for customers.

Financial services minister John Glen said Britain will pass legislation to bring some stablecoins under the regulatory framework, such as complying with existing payment rules.

Stablecoins are cryptocurrencies that are designed to have a stable value in comparison to traditional currencies or a commodity like gold, avoiding the volatility that makes Bitcoin and other digital tokens unsuitable for most transactions.

The government believes that all stablecoins that reference a fiat currency should be regulated.

Here are 10 points to know about Britain’s cryptocurrency hub push:

1) The decision to regulate stablecoins to make way for their usage as a recognised form of payment is part of a larger plan to make the UK a global hub for cryptoasset technology and investment.

2) According to the Government of the United Kingdom, legislation for a financial market infrastructure sandbox to assist firms in innovating, an FCA-led CryptoSprint, collaboration with the Royal Mint on a non-fungible token (NFT), and the formation of an engagement group to work more closely with industry are among the measures.

3) Chancellor of the Exchequer, Rishi Sunak instructed the Royal Mint to design an NFT to be released by the summer.

4) Sunak said that he wanted to make the UK a global powerhouse for cryptoasset technology.

5) Stablecoin issuers and service providers will be able to operate and invest in the UK if the government passes the legislation to bring them into the payments regulatory framework.

6) The government can assure financial stability and good regulatory standards by recognising the promise of this technology and regulating it. This will allow these new technologies to be utilised reliably and safely in the future.

7) John Glen also stated that the UK will explore the transformative benefits of Distributed Ledger Technology in its financial markets. The technology allows data to be synchronised and shared in a decentralised manner, potentially resulting in increased efficiency, transparency, and resilience.

8) Later this year, Britain will hold a consultation on developing legislation for a broader set of cryptoassets, such as Bitcoin, taking into account the sector’s energy use.

9) The UK’s plan also includes exploring blockchain’s potential, including if it can be used to issue British government bonds or gilts.

10) The UK will also look into lowering disincentives for fund managers while including cryptoassets in their portfolios.

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