Britain is setting foot in regulating the cryptocurrency segment. It is said to be coming up with a couple of stablecoins that would be controlled by the regulatory net and simultaneously comply with the payment rules of the country.
Stablecoins are similar to cryptocurrencies but are equipped with a stable value with respect to the traditional currencies, gold or other valuable assets to overcome volatility.
The British government said all the stablecoins having reference to a fiat currency should come under the regulatory net of the country to ensure simple convertibility on demand and at par.
Britain is learned to be consulting for a wider regulation of bitcoin, ether and other cryptocurrencies to take into account the energy consumption of the segment. Crypto has enormous potential and the country is seeking to take maximum advantage.
Britain will soon be coming up with a detailed plan that would include the development of the blockchain in government bonds and gifts issued by the government. It is uncertain how the technology can be blended, but answers should be looked for.
Globally, various governments, banks and authorities are trying to grab the crypto opportunities and reap the maximum benefits. The European Union is said to be soon coming up with a draft law on it.
Meanwhile, the United Kingdom finance minister has asked the country's Royal Mint to develop an NFT that would be issued this summer. NFT is an abbreviation for non-fungible token and is a digital asset. It exists on the blockchain technology that is used in recording transactions secured on a network of computers.
The Financial Conduct Authority and the Bank of England would be launching a regulatory sandbox in 2023 to test blockchain use in market infrastructure.
Legal status will be worked by the country's Law Commission body of autonomous organizations which are decentralized and use blockchain.