The United Kingdom is now seriously considering the regulation of stablecoins for use in the country. According to a Department of Treasury report, there are high chances that the digital assets would be regulated and be adopted as a legal tender in the country. Although the move has seen positive green lights from crypto enthusiasts across the United Kingdom, others are still skeptical. This is mainly down to the recent plunge experienced by UST, a stablecoin issued by Terra.
Prince Charles discussed new regulations in the country
According to a recent report by a media company in the country, a whiff of regulating stablecoins for use was also detected in a recent statement by the Queen. In the statement, Prince Charles noted that a couple of sectors in the United Kingdom would be undergoing new legislation in the coming months.
He mentioned that the bill would seek to improve the economy while making the country habitable for residents. His statement positioned that the new bill would also seek to eradicate illicit activities while helping businesses achieve massive profits by tackling crimes across the economy. A recent news piece pointed out that the United Kingdom’s Finance department was looking to update its regulations regarding infusing stablecoins as a generally accepted means of payments across the country.
United Kingdom rules out algorithmic stablecoins
While most people are still on high alert over the massive plunge of UST and LUNA across the market, the country hopes to continue in its quest. However, some statements have shown that the UK will try to stay ahead of technology in the coming years. The treasury has also noted that algorithmic stablecoins like UST will not be considered, unlike other stablecoin backed by fiat currencies on a 1:1 basis. With this new update, the UK plans to ensure that more opportunities are open for firms in the country without disrupting the financial economy.
Buttressing the failure of UST, the spokesperson mentioned that it was backed by another digital asset. The United States is also in the school of thought following a statement from SEC executive Hester Peirce over the regulation of stablecoins. The SEC boss said that the country could not afford to fail on the project. In a recent meeting, the SEC boss pointed out the increased adoption of stablecoins among entities in the market. She also said this has gotten to the notice of regulators worldwide. Peirce has also urged the regulatory body to ensure they leave out certain technologies, so they carry out maximum experiments on them.