New UK stablecoin rules approved by the UK parliament

Rishi Sunak’s administration intends to start work on crypto-related prospects as soon as possible.

The UK’s parliament approved new stablecoin legislation on October 27, Thursday, and the government said that it will consult on more crypto restrictions and a digital pound in the following weeks. Notably, Rishi Sunak, who was the finance minister then, declared back in April that he wanted to turn the UK into a center for cryptocurrency.

“Certain crypto assets and distributed ledger technology could drive transformational changes in financial markets,” Andrew Griffith, the Economic Secretary to the Treasury Andrew Griffith opined. However, he also stated that there are “risks to consumers and financial stability.”

Regarding the legislation, Griffith further commented: “The government’s position is to start with those most stable, least volatile coins likely to be used by intermediaries as a settlement currency and then we will go forward and consult from there.” Griffith is further excited regarding the introduction of the digital pound, a topic on which the Treasury and Bank of England would be consulting in the upcoming weeks.

This is what Griffith had to say on the matter: “It’s not a trivial exercise, creating a new central bank digital currency… My own hope is that it is a ‘when,’ not an ‘if’.”

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