{"id":108795,"date":"2020-11-10T08:03:03","date_gmt":"2020-11-10T05:03:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/uk-drafting-stablecoin-regulations-and-researching-a-cbdc\/"},"modified":"2020-11-10T08:03:03","modified_gmt":"2020-11-10T05:03:03","slug":"uk-drafting-stablecoin-regulations-and-researching-a-cbdc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/uk-drafting-stablecoin-regulations-and-researching-a-cbdc\/","title":{"rendered":"# UK drafting stablecoin regulations and researching a CBDC"},"content":{"rendered":"

“# UK drafting stablecoin regulations and researching a CBDC <\/strong>”
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The Treasury Department of the United Kingdom has revealed it is drafting proposals to regulate private stablecoins, while also researching central bank digital currencies (CBDC) as an alternative to cash.<\/p>\n

In an announcement<\/a> published on Nov. 9, U.K. Treasury Chancellor Rishi Sunak noted the forthcoming regulatory proposals alongside other goals for the country\u2019s financial services industry \u2014 including a review of the U.K.\u2019s listings regime and support for green finance.<\/p>\n

\u201cNew technologies such as stablecoins \u2013 privately-issued digital currencies \u2013 could transform the way people store and exchange their money, making payments cheaper and faster.\u201d<\/p><\/blockquote>\n

The news<\/a> comes amid a week of decisive negotiations between the U.K. and the European Union over a post-Brexit trade deal. Chancellor Sunak said he hopes the U.K.\u2019s financial services sector will lead \u201cthe global conversation on new technologies like stablecoins and central bank digital currencies\u201d moving forward:<\/p>\n

\u201cWe are starting a new chapter in the history of financial services and renewing the UK\u2019s position as the world\u2019s pre-eminent financial center […] Our plans will ensure the UK moves forward as an open, attractive and well-regulated market.\u201d<\/p><\/blockquote>\n

While details are scant, the announcement asserts the draft guidelines will require stablecoin initiatives to abide by the same minimum standards as entities operating with other methods of payment.<\/p>\n

The document also reveals that both England\u2019s central bank and treasury are currently researching a CBDC, with the Chancellor welcoming work from the two departments into \u201cwhether and how central banks can issue their own digital currencies as a complement to cash.\u201d<\/p>\n

The regulatory implications of stable tokens became a major topic of concern following Facebook<\/a>\u2019s announcement of its plan to launch its digital currency Libra in June 2019.<\/p>\n

Since then, European lawmakers have consistently called for the development of strict and clear regulatory guidelines before allowing private stablecoins to take root within their jurisdictions, emphasizing concerns surrounding monetary sovereignty and consumer protections.<\/p>\n

By contrast, the U.K. Treasury\u2019s Chancellor app<\/a>ears to have made a much more level-headed assessment of the burgeoning stablecoin sector, noting that stable token initiatives will face the same oversight as existing payments firms.<\/p>\n

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We\u2019ll publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.<\/p>\n

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

\u2014 Rishi Sunak (@RishiSunak) November 9, 2020<\/a><\/p><\/blockquote>\n<\/div>\n