The UK Treasury Department is working on a draft to regulate privately-owned stablecoins. The department disclosed this news on November 9 through an official announcement, noting that it is also researching how it could use a Central Bank Digital Currency (CBDC) as an alternative to cash. Reportedly, this move comes as the UK government strives to find the best framework for financial services after the country left the EU earlier this year.
In the publication, Rishi Sunak, the chancellor of the UK’s Treasury Department said,
“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial centre. By taking as many equivalence decisions as we can in the absence of clarity from the EU, we’re doing what’s right for the UK and providing firms with certainty and stability. Our plans will ensure the UK moves forward as an open, attractive and well-regulated market, and continues to lead the world in pioneering new technologies and shifting finance towards a net zero future.”
Sunak went on to note that financial services are a key enabler in the push for a net-zero economy. As such, the chancellor highlighted new suggestions that might help underpin sustainable financial flows while establishing the UK’s global leadership in green finance as the country prepares to host the United Nations Climate Change Conference (COP26) in 2021. These suggestions include issuing the first Sovereign Green Bond in 2021, introducing stronger environmental disclosure standards, and implementing a green taxonomy, among others.
Pushing to become a leader in financial technology
According to Sunak, the UK has been a pioneer in financial services for a long time and will continue spearheading technological innovation in
