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Alongside its interest in increasing crypto adoption in its region, the United Kingdom is now planning to launch its own stablecoin – a digital pound, according to Andrew Griffith, an economic secretary to the UK Treasury. This is in keeping with the country's commitment to become the crypto centre of the world.
With the UK increasing crypto adoption, the launch of a stablecoin appears to be an effort to further boost the adoption of crypto in the region. Andrew Griffith said the UK government has long considered setting up a "scheme for the wholesale use of stablecoins for payment purposes."
GBP Stability Fund of the United Kingdom. On Its Way?
According to BBC, the launch of the UK GBP-backed stablecoin may be coming sooner than expected, as Griffith told the Treasury Select Committee that public consultation on the attributes of a digital pound would be launched in the coming weeks.
Though not all countries in the globe have their currency-backed stablecoin, entities such as Central banks across the continent have been working on and exploring respective digital currencies.
Griffith said to the committee:
"It is fair to look to adopt potentially disruptive technologies, especially when we have a financial and fintech sector that is so strong."
Griffith said he would like to give a chance to 'potentially disruptive technology which can challenge but also turbocharge all these [financial] industries.'
The Intimidating Hold Up
Part of the consideration that appears to be discouraging the regulators from looking into stablecoin is consumer protection. With the crypto winter force having massive impacts on various digital assets, concerns about whether any cryptocurrency can genuinely be considered stable have been raised in curiosity and for protection.
Correspondingly, the report mentioned that there would be a thorough public consultation on britain’s first general regulatory approach to crypto assets — mainly in the sector that concerns consumer protection which has come under scrutiny in recent weeks.
“But the consultation will form part of a research and exploration phase and will help both the Bank of England and the government develop the plans over the following few years,” said Griffith.
He went on to say that when it comes to regulating cryptography, being correct is more important than being the first. "Given the United Kingdom's solid financial reputation, this will be a long-term endeavour."
At the end of the memo, Europe proposed the first comprehensive set of rules in the world to regulate crypto markets. The final approval of this proposal is expected in the coming weeks and will come into effect next year.
Griffith concluded that the UK rules could be expanded to include decentralized funding with greater transparency for everyone. No less than six roundtables will be made with firms in the crypto industry to introduce them to regulators and decision-makers.
Meanwhile, the crypto industry still seems to be in disbelief that Bitcoin finally made it through the $17,000 landmark after some time. Altcoins such as cardano (ada) and solana (ground) have also done important gatherings up in recent days.
