Cryptocurrency: UK Treasury considers plan for digital pound - Yahoo Finance

The authorities is considering introducing a nationalist cryptocurrency oregon "digital pound", the economical caput to the Treasury has told MPs.

The UK was committed to becoming a satellite crypto hub, Andrew Griffith said.

And the authorities was "a agelong mode down the road... to found a authorities for the wholesale use, for outgo purposes, of stablecoins".

Stablecoins are designed to person a predictable worth linked to accepted currencies oregon assets specified arsenic gold.

'Game-changing technology'

A nationalist consultation connected the attributes of a integer lb would beryllium launched successful coming weeks, Mr Griffith told the Treasury Select Committee.

"I privation to spot america found a regime, and this is wrong the FSMB [Financial Services and Markets Bill, presently being debated successful Parliament], for the wholesale usage for outgo purposes of stablecoins," helium said.

Central banks astir the satellite are processing oregon exploring integer currencies.

And Mr Griffith told the committee: "It is close to look to question to clasp perchance disruptive technologies, peculiarly erstwhile we person specified a beardown fintech and fiscal sector."

He wanted to let the accidental for this "potentially disruptive game-changing exertion that tin situation but besides turbocharge each of those [financial] industries", helium said.

Consumer protection

The "crypto winter", a accelerated diminution successful the worth of Bitcoin and different assets and , has intensified concerns astir whether immoderate cryptocurrency tin ever beryllium considered stable.

It besides has the imaginable to rise galore public-policy issues.

And determination volition besides beryllium a nationalist consultation connected Britain's archetypal wide regulatory attack to crypto assets, a assemblage wherever user extortion has travel nether scrutiny successful caller weeks.

But the consultation volition signifier portion of a "research and exploration" signifier and volition assistance some the Bank of England and the authorities make the plans implicit the pursuing fewer years.

When it came to regulating crypto, Mr Griffith told the committee, being close was much important than being first, fixed the UK's "strong fiscal reputation".

"It volition beryllium a agelong lead-time activity," helium said.

'Right balances'

The EU has acceptable retired the world's archetypal broad acceptable of rules for regulating crypto markets.

They are owed to person last support successful the coming weeks and travel into effect successful 2024.

Mr Griffith said the UK rules could beryllium broader, to see decentralised finance, and everyone would payment from greater transparency.

"We privation the close regime, operated successful the close way, that has the close balances successful it," helium told the committee.

He besides committed to clasp "at least" six roundtables with those successful the crypto industry, to "expose america arsenic regulators and determination makers".