UK Finance Ministry admitted to accepting stablecoins as a means of payment

Stable digital coins could become a more efficient payment tool and widen consumer choice, the department’s head, Rishi Sunak believes

04.04.2022 - 16:05

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Stable digital coins could become a more efficient payment tool and widen consumer choice, the department’s head, Rishi Sunak believes.

What’s new? On April 4, Rishi Sunak, head of the UK Treasury, unveiled a plan to turn the state into a global hub for cryptocurrency technology. The department’s press release states that with the appropriate regulation, stablecoins will be recognized as a valid form of payment. It is also claimed that they could become a more efficient means of payment and widen consumer choice.

Press release on the Ministry of Finance’s website

What else does Sunak say? The plans announced by the head of the Ministry of Finance included exploring ways to make the UK tax system more competitive to encourage further development of the crypto asset market. Sunak is working with the Royal Mint to create an NFT in the summer of 2022. He added:

“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.”

What had happened before? On March 25, the Bank of England Financial Policy Committee requested additional powers from the government to strengthen oversight and regulation of cryptocurrencies. In its report, the Central Bank stated that the adoption of digital assets poses financial risks and urged commercial banks to exercise caution.

On March 31, the UK’s Financial Conduct Authority (FCA) canceled temporary registration for cryptocurrency platforms. Operating without a permit is criminally liable.

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