The Treasury has announced that it plans to recognise stable coins as a valid form of payment as part of a wider government initiative to ‘make Britain a global hub for crypto asset technology and investment’.
The Treasury defines ‘stablecoin’ as ‘a form of crypto asset that is typically pegged to a fiat currency such as the dollar and is intended to maintain a stable value’. The government plans to bring stable coins within regulation, creating conditions for stable coin issuers and service providers to operate and invest in the UK.
Commenting on the issue, Chancellor Rishi Sunak said:
‘It’s my ambition to make the UK a global hub for crypto asset technology, and the measures we’ve outlined . . . will help to ensure firms can invest, innovate and scale up in this country.
‘We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term.’