John Glen, the UK’s monetary providers minister, has stated that stablecoins would be the predominant focus of the federal government’s crypto regulatory exercise.
Glen made delivered his feedback whereas addressing a convention organized by Metropolis & Monetary International on Tuesday, Reuters reported.
For Glen, the U.Okay.’s choice to prioritize stablecoins over regulating the broader monetary market is because of fears of monopolies rising available in the market primarily based on the restricted variety of members providing fiat-pegged cryptocurrency cost providers.
“There may be the potential for some companies to swiftly obtain dominance and crowd out different gamers, because of their potential to scale and plug into current on-line providers,” Glen remarked.
Certainly, the minister’s argument echoes sentiments espoused by a number of monetary regulators in opposition to the Diem stablecoin undertaking. Initially dubbed Libra, regulatory authorities in numerous international locations pointed to Fb’s international presence as a major danger issue to sovereign financial insurance policies related to the deliberate digital foreign money undertaking.
Diem for its half has tried to smoothen these regulatory wrinkles by making wholesale modifications to the undertaking. Nevertheless, Diem is yet to receive the mandatory regulatory approval to start launching its stablecoin.
Glen’s feedback are the most recent indication of the U.Okay. authorities’s deal with stablecoins as a part of efforts to advertise novel fintech improvements amid the nation’s withdrawal from the European Union.
Again in November 2020, Rishi Sunak, chancellor of the Exchequer remarked that Brexit offered an inflection point for the U.Okay.’s monetary providers trade. On the time, Sunak revealed that the federal government would prioritize harnessing novel fintech improvements like central financial institution digital currencies and stablecoins to make sure the nation retains tempo with the developments within the rising digital financial system.
As beforehand reported by Cointelegraph, the U.Okay. finance coverage division referred to as for public session on proposed rules for cross-border stablecoins again in January 2021.