The UK Treasury Department announced on Monday that the authority is working on a draft to regulate privately owned stablecoins. The department also added that it’s actively researching central bank digital currency (CBDC) as an alternative to cash. The Treasury Chancellor Rishi Sunak termed stablecoins and privately-issued digital currencies as a cheaper and faster way to make payments. He also appreciated the Treasury Department and the Bank of England’s work for research on CBDC as an alternative way to make payments.
“Stablecoins could transform the way people store and exchange their money.”
The Chancellor provided details about the plans to increase the number of new companies that want to list in the UK. A new task force will be established to propose reforms to help innovative fintech companies list in the United Kingdom. “New technologies such as stablecoins and privately-issued digital currencies could transform the way people store and exchange their money, making payments cheaper and faster,” the Chancellor added. “The Government will propose a regulatory approach for relevant stablecoin initiatives that ensure they meet the same minimum standards we expect of other payment methods,” Sunak further added.
The UK prepares for a central bank digital currency.
The official announcement also states that the UK is seriously considering the launch of its CBDC in the near future as most of the research work has been completed. The Treasury Chancellor aims to extend the UK’s global leadership in financial technology. “As the UK takes a leading role in the global conversation on CBDCs, the Chancellor welcomed work by HM Treasury and the Bank of England to consider whether and how central banks can issue their own digital currencies as a complement to cash,” he said.