The UK will continue its work on whether and how central banks should issue their own central bank digital currencies (CBDC) as a complement to cash, said Rishi Sunak, Chancellor of the Exchequer, in a financial services statement.
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The Chancellor pointed out that after the UK took the decision to separate its ways with the EU, the government’s approach to financial services "will be guided by what is right for the UK." Sunak also emphasized that stablecoins could change the way how people store and exchange their money, by "making payments cheaper and faster."
"To harness the potential benefits of stablecoins, whilst managing risks to consumers and financial stability, the Government will propose a regulatory approach for relevant stablecoin initiatives that ensures they meet the same minimum standards we expect of other payment methods," Sunak said.
The Chancellor also added that the UK will remain at the forefront of technological innovation, citing a possible digitalization of economy.
So far, however, the UK's watchdog has not made much for the crypto market adoption. As iHodl earlier reported, the UK's Financial Conduct Authority (FCA) banned the sale of crypto derivatives and exchange-traded notes (ETNs) to retail investors.
The ban was backed by the research work carried out between July and October 2019, which demonstrated that retail consumers cannot"reliably assess the value and risks of derivatives that reference certain cryptoassets."
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