On Monday, the United Kingdom unveiled its plans to become a global hub for crypto assets.
"The measures we are announcing today will enable firms to invest, innovate, and scale up in the UK, and I hope we can become a global leader in crypto asset technology," said UK Chancellor of the Exchequer Rishi Sunak.
Sunak continued to say that stablecoins were "brought within the regulation" so that it could be used as a "payment method in the UK."
As a further measure, the government has worked with the Royal Mint–which produces the UK's coins–to establish a National Financing Trust that will serve as a "symbol of its "forward-looking approach."
Additionally, the government plans to create legislation for a "financial market infrastructure sandbox," which would be designed to foster innovation within the industry.
As part of the initiative, the FCA will also lead a "crypto sprint" with the Royal Mint—which produces the UK's coins—as well as an "industry engagement group" that will work with the industry.
Sunak continued, "By regulating effectively, we can give businesses the confidence they need to invest for the long term, and we want to see the businesses of the future here in the UK."
Crypto's potential highlighted by UK
As part of its announcement, the UK government outlined the potential utility of stablecoins, stating that with the right regulations, they could provide consumers with a "more efficient" form of payment
"The government must recognize and regulate the potential of this technology now in order for it to be used safely and reliably," they write in their press release.
Blockchain technology will also be explored by the UK government within broader UK financial markets. According to the government news release, this technology could improve efficiency, transparency, and resilience.