Britain weighs regulation of stablecoins and CBDC issuance

The UK Treasury will develop proposals to regulate stablecoins and conduct research into central bank digital currencies (CBDCs).

We’ll publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.

And the @bankofengland & Treasury are considering if central banks can issue their own digital currencies, as a complement to cash. pic.twitter.com/k5hbVT8R5X

— Rishi Sunak (@RishiSunak) November 9, 2020

The head of the department, Rishi Sunak, said that new technologies could make payments cheaper and faster. To exploit the potential advantages of stablecoins, authorities will propose a regulatory approach, говорится in the press release.

The Bank of England and the Treasury will study CBDCs as a complement to cash.

“Our plans will advance the UK as an open, attractive and well-regulated market,” said Sunak.

Earlier, in March, the Bank of England said that CBDC would function as a store of value. Subsequently, the regulator ruled out launching a digital currency in the near term.

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