The UK authorities should pay attention to cryptocurrencies and create a regulatory sandbox where people can experiment with them. This view was expressed by British MP Tom Tugendhat.
We need to think about the contracts and currencies that will shape future trade and risk sharing. We’re seeing the flippening from #Bitcoin to #Ether and we need @hmtreasury to help create space for UK innovation and our legal system to learn what’s needed in a new economy. pic.twitter.com/vUN0rxbW1W
— Tom Tugendhat (@TomTugendhat) May 20, 2021
During his remarks at a parliamentary session, Tugendhat urged authorities to foster cryptocurrency innovation. Otherwise, Britain will stay on the sidelines, he warned.
“The Treasury must create a safe space for the development of cryptocurrency, because establishing a standard for this new economy will shape a new electronic era, a new digital world,” the politician noted.
The Bank of England previously stated that is not obliged to protect commercial banks from potentially negative consequences of the spread of digital currencies. However, the regulator’s chief economist Andy Haldane conceded that their use could improve financial stability.
In January 2021, the UK Financial Conduct Authority warned of risks of investment in cryptocurrencies. In the same month, independent financial adviser Neil Leveridge urged the government and parliament to ban Bitcoin transactions.
In April and May, an artist using the pseudonym Fraz left several messages about the first cryptocurrency in the form of laser projections on the walls of the Bank of England.
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