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The United Kingdom regulator will propose using stablecoin– cryptocurrencies whose prices are pegged to another asset– for payment in the Parliament on Wednesday.
UK Finance Minister, Nadhim Zahawi, will present the Financial Services and Market Bill in Parliament on July 20 to transfer the UK financial services sector.
UK finance members believe crypto assets and stablecoins can change the financial environment and establish the nation as a global leader in digital finance, post-Brexit.
The Financial services and Market bill will set standards for using stablecoins as payments due to the rise of crypto in retail and other businesses. It provides a road map to adopt stablecoins, which could help drive crypto adoption in the UK.
The regulation also covers consumer protections, marketing rules, and decisions with regards to amending the existing rules on digital assets and crypto.
After the collapse of $18 billion stablecoin terraUSD in May, the Bank of England had published a consultation about its plans to regulate stablecoins. It also proposed that the Bank should be given the power to appoint administrators to oversee insolvency procedures for failed stablecoin issuers.
In April, the UK treasury, the finance arm of the government, had announced a set of initiatives to convert the country into a global cyber hub. The announcement also stated that new rules will allow the use of stablecoins for payments.
After the resignation of crypto-friendly members like finance minister Rishi Sunak and senior treasury official Jon Glen, the crypto plans of the country were uncertain and threatened.
Jon Cunliffe, the governor of Bank of England, earlier this month had indicated the possibility of slight delay in news on crypto regulations following the cabinet reshuffle, but had given assurance about the stablecoin rules to be introduced.
The UK has been lagging behind other countries in crypto regulations and adoption. However, there is possibility that the strict stance might change with stablecoin regulation. Recently, the UK government had also called for consultation on DeFi taxation.