The UK has finally come to terms with crypto adoption as the country sets to make stablecoins like Bitcoin legal tender.
The UK’s Economic and Finance Ministry has declared that stablecoins would be added to its present legal framework as a payment framework.
Stablecoins as Legal Tender
UK is set to adopt stablecoins as legal tender as confirmed by John Glen, the Economic Secretary to the Treasury in a speech on Monday 4th April at the Innovate Finance Global Summit, where he stated that the UK will start regulating crypto like stablecoins and look into regulating tokens like bitcoin.
Glen announced that the United Kingdom will enact legislations to include certain stablecoins into the payments ecosystem, allowing stablecoin issuers and service providers to operate and expand in the country.
He went on to say that “signing this law will also enable consumers to use stablecoin payment services with confidence… and the government will introduce this legislation, as part of an ambition to deliver a world-leading regulatory regime for stablecoins.”
According to the government, stablecoins will be placed under regulation, clearing the way for them to be used as a recognized form of payment in the UK.
In order to “make Britain a worldwide powerhouse for cryptoasset technology and innovation,” the UK government is taking a number of steps to regulate and use crypto in the nation, including tokens like bitcoin.
“We believe the market has evolved enough for us to consider regulating a larger range of crypto activities, including trading of tokens like Bitcoin,” Glen added. “We’ll also consult on a world-leading framework for the rest of the crypto-market… a system that will enable safe, sustainable, and, hopefully, quick innovation.”
The government sees a future in crypto
According to Glen, the government sees crypto as having a lot of promise and wants to take full benefit of it. as stated by Glen, having effective regulation isn’t a hindrance to achieving that goal.
“Having robust and effective regulation won’t hinder innovation, it’ll actually boost it, by giving people and businesses the confidence they need to think and invest for the long-term,” he said.
The government has taken steps such as forming a Cryptoasset Engagement Group to engage more closely with the sector and the FCA soliciting direct input from industry players on matters relevant to the formation of a cryptoasset regime.
Glen stated that regulation will not be hard or static, but rather improved and revised as required.
While still commenting on the latest bill about to be passed by the UK government, Finance minister, Rishi Sunak stated that it is his ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country.
