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The U.K. government is “fully behind” a stablecoin for wholesale settlements that occur between banks, Andrew Griffith, the economic secretary, said in a meeting in Parliament on Tuesday.
The stablecoin – a digital asset backed by fiat currency – wouldn't be issued by the government, but instead by a third-party provider, Griffith told the Treasury Committee.
"The United Kingdom government "fully supports" a stablecoin for wholesale settlements that occur between banks, Andrew Griffith, the economic secretary, told a meeting in Parliament on Tuesday.
Stablecoin – a cash-based digital asset – would not be issued by the government, It's a third-party supplier, I want a regimen, and it's in fsmb (financial services and markets) for wholesale use for stablecoins payment purposes,' Griffith said, The government is "very far away from the plan". The bill should be ready for passage by Easter, Griffith said previously.
It should pass by Easter," said Griffith. " Japan’s largest bank, Mitsubishi UFJ Trust, for one, looks set to issue a stablecoin for settlements in February. In the U.S., a group of larger banks in November began working with the Federal Reserve Bank of New York to test using digital tokens that represent the dollar for settlements.
The U.K. Treasury is launching a consultation on what issuing a central bank digital currency (CBDC) for wholesale and retail payments will look like, but Griffith said he believes that the stablecoin will “get there first.” Treasury will also issue a consultation on further regulating the crypto industry in the coming weeks, something that lawmakers have been calling for following the collapse of crypto exchange FTX.
The UK Treasury is launching a consultation on what the issuance of a digital central bank currency (CBDC) will look like for wholesale and retail payments."
Griffith stated that he believes stablecoin "to get there first."
