The UK treasury has revealed ongoing efforts to provide regulations for stablecoins. The chancellor of the Exchequer, Rishi Sunak, announced that there would soon be regulatory proposals for stablecoins. Noting that the UK is a pioneer in financial services and aims to remain a leader in innovating technology, the announcement said:
“New technologies such as stablecoins – privately-issued digital currencies – could transform the way people store and exchange their money, making payments cheaper and faster.”
Sunak added that the government would work on a regulatory proposal that would meet the “same minimum standard” expected of other payment methods.
In addition, the chancellor stated that the UK treasury is “starting a new chapter” to ensure that the UK works towards a well-regulated market. He further said the UK will make continuous effort to be a global leader in pioneering new technologies like stablecoins and central bank digital currencies (CBDCs).
Referring to CBDCs, the announcement further revealed that the Bank of England and HM Treasury would work on determining if and how central banks can issue their digital currencies to complement fiat currencies.
Furthermore, the announcement said the UK would also implement green taxonomy. The green taxonomy will support the UK’s transition to a sustainable economy. The announcement further noted that the green taxonomy implementation would “improve understanding of the impact of firms’ activities and investments on the environment.”
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