UK to add Stablecoins as Recognised Payment Method
The UK treasury department has made announcements that it will recognize stablecoins as a Recognised Payment Method in the country. The news was announced by the government in hope that the kingdom will become a global hub for cryptocurrencies. This move was criticized by the opposition parties who consider it a “Gimmick”.
Stablecoins are those cryptocurrencies whose value is pegged to some other currency or commodity. It derives its value from that peg. They are considered less volatile than cryptocurrencies like Bitcoin and Ether(Ethereum).
The Chancellor of the Exchequer Rishi Sunak has expressed that he wants Britain to become a global hub for blockchain technology and investment. He added that:
“It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country.”
He further went ahead to add that he will ask The Royal Mint to issue NFTs coming summer.
The issue did not go down well with the opposition parties. Tuliq Siddiq, a Labour MP went on to criticize this move claiming that:
“Under this government, crypto firms linked to criminal gangs have been left to trade freely. It’s time to regulate the sector.”
In a strange timing, Bank of England Governor Andrew Bailey on Monday warned that cryptocurrencies were the new frontline in criminal scams.