Wednesday, November 11, 2020

Stablecoin And CBDC Framework To Be The Focus Of The UK

 The United Kingdom (UK) in a statement revealed it is formulating a policy for private stablecoin including conducting a study on the central bank's digital currency (CBDC) as an alternative to cash.

The matter was announced by Rishi Sunak, UK Finance Minister yesterday with a proposal to focus on future regulation along with other goals in the country's financial services industry including reviewing the UK listing regime as well as support for financial flows.

Although the details of the policy are minimal, the announcement emphasizes that the guidelines framework demands stablecoin initiatives to comply with the minimum standards, just as entity operations through other payment methods.

Sunak is also excited about the collaboration between England's central bank and the treasury in reviewing the CBDC, especially issues involving the issuance of digital currency as a cash complement.

Be aware, since Facebook announced their plans to launch digital currency, Libra in 2019, the policy of implications of stable tokens has been a major topic among the financial industry.

Since then, European lawmakers have monitored the development of strict and clear regulatory guidelines before allowing private stablecoin to be established in their jurisdiction amid concerns over rising monetary sovereignty and consumer protection.

Sunak, however, has taken the first step, making a high assessment of the development of the stablecoin sector, including focusing on stablecoin initiatives that will face the same oversight as existing payment firms.