The British finance minister believes that stablecoins have the potential to transform money management. The issuance of a central bank digital currency would soon receive approval.
There could be a significant change in the handling of finances in the UK in the years to come. The finance ministry of that European country announced that they are preparing for greater regulation of stablecoins and private issuances of this type.
British finance minister Rishi Sunak said that the Bank of England and the Treasury Department are considering whether central banks can issue their own cryptocurrencies. With this, they are looking to develop a project that is a complement to cash.
On his Twitter account, the minister reported that a consultation process will serve to ensure that private currencies and stablecoins “meet the high standards that we expect from other payment methods.”
The official believes that cryptocurrencies have great potential and that it is a technology that could transform money management among the country’s citizens.
According to the official website of the national government, Sunak stressed that “new technologies could transform how people store and exchange their money, making payments cheaper and faster.”
The minister made it clear that the government will propose a regulatory approach for initiatives of this type. Its objective is to take advantage of the potential benefits of stablecoins (privately issued digital currencies) to guarantee a modicum of control.
They have already advanced the drafting of the rules but did not specify when they could disseminate them. Concerning the Bank of England’s research on central bank digital currencies, they only reported that they have advanced in their development.
The British government wants to establish a new working group in which FinTech (financial technology) companies take part. Sunak says that the UK would expand its “FinTech leadership”. However, other countries have already advanced projects of this type.
National Cryptocurrencies under Development
China, Bahamas, and Lithuania, among other countries, have already advanced and even activated projects on national digital currencies. This is an indication that the use of the so-called Central Bank Digital Currencies (CBDC) awakens interest in international finance.
Concerning China, the country not only wants to become a reference in terms of national cryptocurrencies, with the creation of its “digital yuan”. President Xi Jinping has said on several occasions that the Asian nation should also take the lead in the development of blockchains.
The increase in the number of Bitcoin users in this country could be influencing the UK’s approach to this type of asset. Last July, the number of cryptocurrency buyers had risen by 42%, according to a study by the UK’s Financial Conduct Authority (FCA).
In recent months, the relevance of cryptocurrencies has grown exponentially on a global scale. Many countries have become aware of this situation and have sought to implement the use and issuance of their national digital currencies.
By Alexander Salazar
