London, April 5 (BNA): Britain has unveiled plans to regulate some cryptocurrencies as part of a broader plan to become a global hub for digital payments, as authorities in the United States and Europe race to set rules for cryptocurrency.
Cryptocurrencies have become so popular that officials around the world are scrambling to figure out how to regulate them amid concerns that they could threaten financial stability and hurt consumers.
“The UK is open for business – open to crypto companies,” John Glenn, the Treasury’s economic finance minister, said in a speech on Monday.
Chancellor of the Exchequer Rishi Sunak has also asked the Royal Mint to create a digital group known as NFT as “an tagline for the forward-looking approach the UK intends to take,” Glenn said.
Cryptocurrency proponents say the technology will make payments faster, easier and more transparent, while skeptics fear it could be used for illegal activities such as money laundering and contributing to carbon emissions due to the heavy computing power needed to process transactions.
Last month, the US beefed up government oversight of cryptocurrencies while EU lawmakers approved draft rules for crypto-asset groups.
Glenn said the government plans to update laws on payments to include a typo in a cryptocurrency called stablecoin to encourage exporters and service providers to operate and grow in the UK.
Stable coins are usually pegged to the dollar or a commodity like gold, which makes them much less volatile than regular cryptocurrencies like bitcoin, which can fluctuate wildly in value, AP reports.
“This will also enable consumers to use stablecoin payment services with confidence,” Glenn said, without specifying which stablecoins would be regulated.
There are more than 200 stablecoins, and two of the largest are Tether and USD Coin. Stablecoins are often used to pay fees on cryptocurrency exchanges or send cross-border payments.
There are also plans to explore the idea of using encryption technology to issue British government debt.
Glenn said the government is now looking at “regulating a broader range of crypto activities including the trading of tokens such as bitcoin” with an advisory expected later this year.
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