John Glen, the UK’s monetary providers minister, has stated that stablecoins would be the most important focus of the federal government’s crypto regulatory exercise.
Glen made delivered his feedback whereas addressing a convention organized by Metropolis & Monetary World on Tuesday, Reuters reported.
For Glen, the U.Ok.’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’s the potential for some companies to swiftly obtain dominance and crowd out different gamers, because of their skill 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 towards the Diem stablecoin mission. Initially dubbed Libra, regulatory authorities in numerous nations pointed to Fb’s world presence as a big threat issue to sovereign financial insurance policies related to the deliberate digital forex mission.
Diem for its half has tried to smoothen these regulatory wrinkles by making wholesale modifications to the mission. Nonetheless, Diem is but to obtain the mandatory regulatory approval to start launching its stablecoin.
Glen’s feedback are the newest indication of the U.Ok. authorities’s give attention to 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 provided an inflection level for the U.Ok.’s monetary providers business. 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 economic system.
As beforehand reported by Cointelegraph, the U.Ok. finance coverage division known as for public session on proposed guidelines for cross-border stablecoins again in January 2021.