The UK presents its plan for Stablecoins and for a digital currency for its central bank

The UK Treasury Department recently announced that it is working on a project to regulate private Stablecoins. The department added that it is actively researching central bank digital currency (CBDC) as an alternative to cash.

The Chancellor of the Treasury, Risha Suanak, has called Stablecoins and private digital currencies a cheaper and faster way to make payments. In addition, the Chancellor appreciated the work done by the Treasury Department and the Bank of England in researching the CBDC as an alternative means of payment.

In addition, the Chancellor provided details of plans to increase the number of new companies wanting to go public in the UK. A new working group will be set up and will propose reforms to help innovative companies in the information technology sector to go public in the country.

“New technologies, such as Stablecoins and privately issued digital currencies, could transform the way people store and exchange their money, making payments cheaper and faster. In order to harness the potential benefits of electronic money, while managing risks to consumers and financial stability, the government will propose a regulatory approach for e-coin initiatives that will ensure they meet the same minimum standards that we expect from other methods payment,” adds Sanak.

CBDC research

The official announcement indicates that the UK is seriously considering launching its CBDC in the near future, as most of the research has been completed. The Chancellor aims to expand the UK's global leadership in financial technology. "As the UK plays a leading role in the global conversation on central bank digital currencies, the Chancellor praised the work of the HM Treasury and the Bank of England to examine whether and how central banks can issue their own digital currencies as a complement to cash,” Sunak adds.

The Chancellor outlined plans to position the UK at the forefront of green finance to help the country meet its environmental targets.