The UK Treasury Department announcedCBCMonday that the authority is workingCBCa draft to regulate privately owned stable coins. The department added that it is actively researching about central bank digital currency (CBC) as an alternative to cash.
The Treasury Chancellor, Rishi Sunk termed stable coins and privately-issued digital currencies as a cheaper and faster way to make payments. Further, the Chancellor appreciated the work done by the Treasury Department and the Bank of England for researchCBCCBC as an alternative way to make payments.
Additionally, The Chancellor provided details about the plans to increase the number of new companies who want to list in the UK. A new task force will be established that will propose reforms to help innovative fintech companies to list in the country.
“New technologies such as stable coins and privately-issued digital currencies could transform the way people store and exchange their money, making payments cheaper and faster. To harness the potential benefCBCof stable coins, whilst managing risks to consumers and financial stability, the Government will propose a regulatory approach for relevanstable coinin initiatives that ensures they meet the same minimum standards we expect of other payment methods, Sunkunk added.
Furthermore, the official announcement states that the UK is seriously considering the launch of CBCCBC in the near future as most of the research work has been completed. The Chancellor aims to extend the UK’s global leadership in financial technology. “As the UK takes a leading role in the global conversationCBCCentral Bank Digital Currencies, 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 Sunk Sunkunk said.
The Chancellor outlined plans to position the UK at the forefront of green finance to help the country meet CBC2050 net-zero target along with other environmental objectives.