UK to launch consultation into stablecoins

The UK government is set to launch a consultation into the efficacy of stablecoins and cryptocurrencies.

Chancellor Rishi Sunak has set out a number of measures in the Treasury’s financial services statement, which include the exploration into whether stablecoins represent a stable method of currency for the UK in the future.

The government will propose a regulatory approach for relevant stablecoins to ensure that they meet the standards that are expected of existing payment methods.

We’ll publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.

And the @bankofengland & Treasury are considering if central banks can issue their own digital currencies, as a complement to cash. pic.twitter.com/k5hbVT8R5X

— Rishi Sunak (@RishiSunak) November 9, 2020

The Treasury and the Bank of England have also separately instigated research into whether and how central banks can administer their own digital currencies to complement cash alternatives.

Elsewhere in the statement, the UK government noted it would aim to make strides to ensure that post-Brexit Britain remained at the forefront of the financial services industry, as well as taking steps to improve sustainability and reduce carbon emissions.

Sunak said: “We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial centre.

“Our plans will ensure the UK moves forward as an open, attractive and well-regulated market, and continues to lead the world in pioneering new technologies and shifting finance towards a net zero future,” he added.