In a statement published Nov. 9, UK Treasurer Rishi Sunak noted the upcoming regulatory proposals alongside other targets for the country’s financial services sector – including a review of the UK listing regime and green financial support. At the same time, Sunak has placed stablecoins and the central bank’s digital currency (CBDC) at the heart of the UK’s efforts to maintain a post-Brexit financial services hub.
U.K. Treasury revealed it is drafting proposals to regulate private stablecoins while also researching CBDC
The news comes amid a week of decisive negotiations between the UK and the European Union over a post-Brexit trade deal.
The UK Department of Finance said:
“We would put forward proposals for regulating relevant stablecoin always to ensure they are held to the same standard as rival payment methods.”
Prime Minister Sunak said he hopes the UK’s financial services sector will lead the global conversation about new technologies like stablecoins and central bank digital currencies in the future:
“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial center. Our plans will ensure the UK moves forward as an open, attractive, and well-Companies Market.”
We’ll publish a consultation to ensure new privately-issued currencies, stablecoins, meet the high standards we expect of other payment methods.
— Rishi Sunak (@RishiSunak) November 9, 2020
The announcement states that the draft guidance will require stablecoin initiatives to follow the same minimum standards as entities that operate with other payment methods. In it, both the UK central bank and the treasury are currently researching a CBDC. However, the question is whether central banks can issue CBDCs as an additional source of cash.
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