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In an ambitious move to position the U.K. as a front-runner in the cryptocurrency sector, the government and the Bank of England (BOE) are introducing sweeping regulations for stablecoins and digital currencies. The BOE’s strategy primarily focuses on regulating stablecoins integral to payment systems by early 2024. This approach is driven by a belief that stablecoins, typically linked to stable assets like the British pound, pose less risk to the financial system compared to other cryptocurrencies. Consequently, the BOE’s regulatory framework is designed to maintain the resilience of these digital currencies within significant payment infrastructures. JUST IN: 🇬🇧 Bank of England proposes allowing stablecoins as a payment option for goods and services. — Watcher.Guru (@WatcherGuru) November 6, 2023 Moreover, the Financial Conduct Authority (FCA) will oversee the broader crypto market, ensuring a comprehensive regulatory umbrella covering all aspects of digital currency operations. Lawmakers advise caution This dual regulatory mechanism is a thoughtful response to the complexities and varied risks presented by different types of digital currencies. The regulations are the latest in a series of moves the U.K. government has been making to streamline the crypto space in the island kingdom. In August, the BOE, in conjunction with HM Treasury, invited interested parties to join an advisory group to explore the feasibility of a digital pound. Following the announcement, the BOE received more than 50,000 responses, underscoring widespread public concern regarding privacy, the use of cash, and the pound’s future trajectory. However, the BOE’s quest for a digital pound has not been without criticism. According to Bloomberg, U.K. lawmakers are questioning whether the digital pound is needed. The influential Treasury Committee chaired by Conservative MP Harriett Baldwin has urged the BOE to “proceed with caution” and consider measures to stem the risks that may come with a digital pound. Per…

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Filed under: News - @ December 3, 2023 6:08 am