London wants to be able to accept stablecoins as a means of payment

The growing importance of the cryptocurrency sector in the economy is being closely observed around the world. (Photo: 123RF)

The British government said on Monday that it wanted to strengthen the attractiveness of the United Kingdom in the cryptocurrency sector, in particular by working on a way to accept “stablecoins”, these cryptoassets backed by traditional currencies, as a means of payment.

“Stablecoins need to be included in a regulatory framework that will ultimately lead to their use as a recognized means of payment,” the UK Treasury said in a statement.

In a report published the same day, the Treasury believes that “stablecoins” should be regulated in the same way as existing means of payment, by the Payment Systems Regulator (PSR), and by the Bank of England ( BoE) if their size creates a systemic danger, as for banks.

Other measures are also planned by the Treasury, such as “the study of ways to make the British tax system more competitive to encourage the development of the crypto-asset market”.

More unexpectedly, the Treasury wants to work with the Royal Mint, responsible for smelting UK coins and medals, to issue an NFT (non-fungible token), those online assets whose authenticity and uniqueness is guaranteed by a chain of blocks (or “blockchain”), the technology at the heart of the creation and use of cryptocurrencies.

“My ambition is to make the UK a global center for crypto-asset technology, and the measures we are detailing today will help ensure businesses invest, innovate and grow in this country,” said Finance Minister Rishi. Sunak in the same press release.

The growing importance of the cryptocurrency sector in the economy is being closely observed around the world.

US President Joe Biden launched the construction site for a future digital dollar in early March.

Market and currency regulators are sometimes less enthusiastic.

The Governor of the Bank of England (BoE) said on Monday that cryptocurrencies were “the new battlefield” for online scams, reports the financial press.

Its monetary institute had underlined at the end of March the increasingly significant risks created by the sector, while “the potential value of crypto-assets increased tenfold between the beginning of 2020 and November 2021, reaching 2.9 trillion US dollars at its highest. high,” according to BoE estimates.

The President of the European Central Bank (ECB) Christine Lagarde had warned of the “threat” posed by cryptocurrencies obtained in exchange for rubles in an attempt to circumvent the sanctions.

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