UK researching CBDC and stablecoin regulations
10 Nov 2020
The UK Treasury Department is drafting proposals for the regulation of private stablecoins, and also researching central bank digital currencies (CBDCs).
According to Chancellor Rishi Sunak, the upcoming regulatory proposals will include a review of the country’s listings regime and support for green finance, Cointelegraph reports.
Sunak stated: “New technologies such as stablecoins — privately-issued digital currencies — could transform the way people store and exchange their money, making payments cheaper and faster.”
The Chancellor went on to add that he hopes Britain’s financial services sector will lead “the global conversation on new technologies like stablecoins and central bank digital currencies” moving forward: “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 center. [...] Our plans will ensure the UK moves forward as an open, attractive and well-regulated market.”
The Bank of England and the Treasury are researching a CBDC, as to “whether and how central banks can issue their own digital currencies as a complement to cash.”
Moreover, the announcement maintains that the draft guidelines will require stablecoins to follow the same minimum standards as other payment methods.
Following Facebook’s announcement of plans to launch its digital currency, Libra, back in June last year, the regulatory implications of stablecoins have caused widespread concern.
As such, European lawmakers have called for strict, transparent guidelines before private stablecoins can be introduced, highlighting worries regarding monetary sovereignty and consumer protections.
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