Crypto currencies UK Treasury considers plan for digital currency.
Government officials are contemplating creating a national cryptocurrency, also known as a “digital pounds” according to the economic secretary of the Treasury has informed MPs.
The UK is determined to become an international cryptocurrency center, Andrew Griffith said.
The administration did not have “a long way off the way… in order to create an arrangement for the mass use, for the purpose of payment of currency called stable coins”.
Stable coins are designed to provide an underlying value that is predictable and tied to traditional currencies or assets like gold.
A public consultation on the benefits of a digital currency would be held in the coming weeks Mr Griffith informed his Treasury Select Committee.
“I am keen to see us create an appropriate system, and this is in the FSMB [Financial Services and Markets Bill which is currently under debate in the Parliamentary Committee], to allow the use in bulk to pay for the use of stablecoins” he added.
Central banks from around the world are exploring or developing digital currencies.
And Mr. Griffith informed his committee members: “It is right to consider embracing potential disruptive technologies, especially given the solid fintech sector and financial industry.”
He wanted to create the chance for this “potentially disruptive technology that could make a difference, while also accelerating the entire financial industries” He said.
Secure for the consumer
“The “crypto winter” is a sharp drop in the value Bitcoin as well as other assets is causing a lot of concern over whether any cryptocurrency could ever be considered to be stable.
It is also able to address a number of issues in public policy.
Additionally, there will be a public discussion regarding the UK’s first regulation of cryptocurrency assets, a market which has seen consumer protection been the subject of scrutiny in recent months.
However, the consultation will be part of the “research and investigation” phase that will assist as well government officials as well as the Bank of England and the government formulate plans in the coming years.
When it came to the issue of regulating cryptocurrency regulations, Mr Griffith stated to the committee, the importance of being right was greater than being first, considering that the United Kingdom has a “strong financial standing”.
“It is going to be a lengthy time-frame,” he said.
The EU has announced the first global set of regulations for the crypto market.
They will be approved within the next few weeks, and take the law in 2024.
Mr. Griffith stated that his comments suggested that the UK regulations could become more expansive and include the decentralised finance system, and that everyone will benefit from greater transparency.
“We need the right system that is operated in a proper way, and with the right balances,” he told the committee.
He also pledged to hold “at at” six roundtables who work in the crypto sector, so as to “expose us as regulators and decision-makers”.