Measures include legislating for a ‘financial market infrastructure sandbox’ to help firms innovate, a Financial Conduct Authority-led ‘CryptoSprint’, working with the Royal Mint on an NFT, and an engagement group to work more closely with industry.
This is part of a package of measures to ensure the UK financial services sector keeps pace with technology, attracting investment and jobs and widening consumer choice.
Stablecoins are a form of cryptoasset that are typically pegged to a fiat currency such as the dollar and are intended to maintain a stable value. With appropriate regulation, they could provide a more efficient means of payment and widen consumer choice.
The government intends to legislate to bring stablecoins within the payments regulatory perimeter, creating conditions for stablecoins issuers and service providers to operate and invest in the UK.
By recognising the potential of this technology and regulating it now, the government can ensure financial stability and high regulatory standards so that these new technologies can ultimately be used both reliably and safely.
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