The UK Exchequer has revealed that it is developing proposals to regulate private stable coins, while exploring central bank digital currencies (CBDCs) as an alternative to cash.
In an announcement published on November 9th British Chancellor of the Exchequer Rishi Sunak noted the upcoming regulatory proposals along with other objectives for the national financial services sector - including a review of the UK's listing system and support for green finance.
This news comes during a week of decisive negotiations between the UK and the EU on the post-Brexcie trade agreement. Chancellor Sunak said he hoped that the UK financial services sector would lead "a global discussion on new technologies such as stable coins and central bank digital currencies:
While the details are few, the announcement states that the draft guidelines will require stabilcoin initiatives to meet the same minimum standards as those of other payment methods.
The document also reveals that both the English central bank and the treasury are currently conducting research on the CBDC, with the Chancellor welcoming the work of both departments on "whether and how central banks can issue their own digital currencies as a complement to cash".
