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UK Government releases plan to turn nation into a global crypto asset technology hub

Financial services minister John Glen stated that Britain will pass legislation to bring some stablecoins under the regulatory framework, such as to observe existing payment rules.

New Delhi: The United Kingdom unveiled a detailed strategy to harness the power of cryptocurrency assets and blockchain technology to help the process of making payments for customers.

Financial services minister John Glen stated that Britain will pass legislation to bring some stablecoins under the regulatory framework, such as to observe existing payment rules.

Stablecoins are cryptocurrencies that are designed to have a stable value in comparison to traditional currencies or a commodity like gold, avoiding the volatility that makes Bitcoin and other digital tokens unsuitable for most transactions.

Cryptocurrency

The government believes that all stablecoins that reference a fiat currency should be regulated.

Here are the 6 points about Britain’s cryptocurrency hub push:

  1. To make their way for their usage as a recognised form of payment, the decision to regulate stablecoin is part of a larger plan to make the UK a global hub for crypto asset technology and investment.
  2. As per the Government of the United Kingdom, legislation for a financial market infrastructure sandbox to assist firms in innovating, an FCA-led CryptoSprint, collaboration with the Royal Mint on a non-fungible token (NFT), and the formation of an engagement group to work closely with industry are among the measures.
  3. Besides, chancellor of the Exchequer, Rishi Sunak, instructed the Royal Mint to design an NFT to release by summer.
  4. Sunak said that he wanted to make the UK a global powerhouse for crypto asset technology.
  5. The stablecoin issuers and service providers will be able to operate and invest in the UK if the government passes the legislation to bring them into the payments regulatory framework.
  6. Assurance can be given by the government about financial stability and good regulatory standards by recognising the promise of this technology and regulating it. This will help these new technologies to be utilised reliably and safely in the future.