Home
News
- The UK had disclosed its plans to emerge as a crypto hub and legalize payments via stablecoins earlier in April.
- Following the recent wobble in the stablecoin sphere, the UK is going on with its plans.
- The Government is aware that some stablecoins are not suitable for payment purposes, highlights a spokesperson.
The UK Is Firm With Its Decisions
Earlier in April, the UK had disclosed its plans to emerge as a crypto hub and legalize payments via stablecoins. But after the massive meltdown that the Terra ecosystem faced, folks might have thought that Her Majesty’s Treasury would halt the plans for a while, but seemingly the regulators are moving ahead with their plans.
The UK Treasury has highlighted that it will move forward with its plans to develop legislation to make certain stablecoins accepted currencies for goods and services.
Last week, the popular algorithmic stablecoin TerraUSD (UST) not only witnessed a de-pegging but slipped below $0.2. And this prompted the crypto folks to rethink the stability of even the stablecoins and the overall crypto market.
Despite all of these, the UK Treasury highlights that it is following through with the plans for stablecoin acceptance.
A report by The Telegraph highlights the thoughts of a spokesperson for the Treasury who cited, Legislation to regulate stablecoins, which were utilized as a means of payment, will be a part of the Market Bill and Financial Services which was announced in the Queen’s Speech.
Further specifying that the legislation would encourage the growth of crypto service providers in the UK while creating protections to facilitate people to utilize these stablecoins reliably and safely.
ALSO READ – What made the revenue stream, Ethereum Name Service, to hit a record high this month?
The spokesperson also highlighted that the Government has been clear that some stablecoins are not suitable for payment purposes because they have similar characteristics to unbacked crypto assets. And that they will continue to monitor the wider crypto asset market and stand ready to take further regulatory action if needed.
But despite what the Treasury is doing, the overall crypto market has been witnessing bearish trends. And the collapse of LUNA came as a shock for the enthusiasts.
These instances yet again raise concerns expressed by crypto critics. It is to look forward to how the crypto sphere manages to pick itself up and show recovery.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
