The UK Treasury said they are preparing proposals to regulate special stack coins and are also looking at central bank digital currencies, or CBDCs, as an alternative to cash.
In a statement released on November 9, UK Treasury Secretary Rishi Sunak highlighted upcoming regulatory proposals along with other goals for the country’s financial services industry, including an overview of the UK IPO system and support for green finance.
“New technologies like stack coins – privately issued digital currencies – could change the way money is stored and exchanged, making payments cheaper and faster.”
The news comes in the middle of a week of important negotiations between the UK and the EU on a post-Brexit trade agreement. Chancellor Sunak said he hopes to spearhead the UK financial sector “a global conversation about new technologies such as stack coins and central bank digital currencies”:
“We are embarking on a new chapter in the history of financial services and are restoring the UK’s position as the world’s leading financial center. […] Our plans will ensure that the UK remains an open, attractive and well-regulated market. … ”
While details are few, the announcement emphasizes that the draft guidelines will require stable currency initiatives to meet the same minimum standards as organizations working with other payment methods.
The document also shows that both the central bank and the Treasury of England are currently looking for a central bank digital currency, and the adviser welcomes the work of the two departments on “whether and how central banks can issue their own digital currencies. pay in cash.”
The regulatory implications of stable tokens have become a major concern since Facebook announced its plan to launch the Libra digital currency in June 2019.
Since then, European lawmakers have consistently called for the development of strict and clear guidelines before allowing private stablecoins to take root in their jurisdictions, with particular attention to issues of monetary sovereignty and consumer protection.
On the contrary, it appears that the British Chancellor of the Treasury has made a more even assessment of the growing stable coin sector, indicating that token initiatives will have the same oversight as current payment firms.