UK to Launch Stablecoin, Set to Become Major Crypto Hub

11.1.2023 | 11:58

• The UK Economic Secretary to the Treasury has affirmed that the country will likely launch a stablecoin soon.
• The launch of the stablecoin will go hand-in-hand with the Financial Markets Infrastructure.
• The Financial Services and Markets Bill (FSMB) will give the Financial Conduct Authority (FCA) the necessary authority to regulate the cryptocurrency industry, including stablecoins.

The UK is edging closer to the launch of a stablecoin, as the country’s Economic Secretary to the Treasury, Andrew Griffith, recently revealed to the UK Parliament Treasury Committee. During a meeting with the committee, Griffith stated that the country’s commitment to becoming a global crypto hub would be furthered by the introduction of a stablecoin.

The stablecoin would be used for wholesale settlements between banks, and a third-party provider would be in charge of issuing it. This issuance process will take place in tandem with the Financial Markets Infrastructure, which is outlined in the Financial Services and Markets Bill (FSMB). This bill has already passed a second reading in the House of Lords and will give the Financial Conduct Authority (FCA) the power to regulate the cryptocurrency industry, including stablecoins.

Griffith also expressed the possibility for the UK to introduce a Central Bank Digital Currency (CBDC) in the long term. However, he believes that the introduction of the stablecoin must come first in order to properly facilitate the process.

The potential launch of a stablecoin and CBDC in the UK is a sign of the country’s commitment to becoming a major player in the global crypto industry. This move could potentially set a precedent for other countries, as they explore the potential of blockchain technology and the use of cryptocurrencies.

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