UK Government Seeks To Adopt Stablecoins as Legal Tender and Turn UK into a Global Hub for Crypto Assets

The United Kingdom (UK) has revealed the several efforts it’s putting in place to turn the region into a global hub of crypto assets.

In a statement, Rishi Sunak, the Chancellor of the Exchequer, said:

“It’s my 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.

“We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term.

“This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.”

Read Also: European Union (EU) Parliament Votes against Ban on Bitcoin and Ethereum’s Proof-of-Work (PoW)

John Glen, the Economic Secretary to the HM Treasury, also disclosed on 4th April at the Innovate Finance Global Summit that the government of the United Kingdom is seeking to adopt stablecoins as legal tender.

In a  press release published on 4th April by the HM Treasury, it’s disclosed that there is a ground plan to bring stablecoins under the existing regulatory framework in order to smoothen their adoption for payments.

The excerpt of the press release says:

“The government has today announced moves that will see stablecoins recognised as a valid form of payment as part of wider plans to make Britain a global hub for cryptoasset technology and investment.”

HM Treasury also noted that it’s planning to enhance business innovation by legislating a financial market infrastructure sandbox.

The department further stated that a working group, which will be led by the Economic Secretary, will be established to work closely with the crypto industry in the region in order to pinpoint a better way to regulate the fast-growing asset class.

Read Also: European Parliament Passes Crypto Rules That Aim To Monitor Self-Hosted Wallets

It’s also disclosed that the government is exploring ways of boosting the competitiveness of the UK tax system to encourage further development of the crypto industry in the region.

According to the press release, the Chancellor of HM Treasury, Rishi Sunak, has commissioned the Royal Mint to create a non-fungible token (NFT) by the summer of 2022. The NFT will be designed to serve as an emblem of the forward-looking approach the UK is determined to take.

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