Stablecoins are poised to become payments 3.0 as the technology represents an upgrade to the existing global payments rails. In the UK, the government has just released draft legislation which is deemed to be nearly complete, designed to support privately issued digital currency.
Today, the Payments Association has shared its opinion on the new policy.
Riccardo Tordera Ricchi, Director of Policy and Government Relations at The Payments Association, supported the UK government’s move as being in the right direction.
“It’s a huge step forward in digital finance for the UK to finally have the publication of the SI draft on how to progress in crypto assets. We welcome the direction of travel, particularly the focus on sandboxes with major jurisdictions like the US, which are rapidly advancing digital asset regulation – something The Payments Association has long advocated for, said Ricchi.
He added that there is a need for continued momentum to get stablecoins within the regulated payments perimeter.
“We have been waiting more than two years for HMT to amend the Payment System Regulations and we now need HMT to move at pace to make this a reality,” Ricchi stated. “This clearly signals intent from the government to promote a fertile environment in the UK for crypto assets.”
Initially, CBDCs or central bank digital currencies caught the attention of the world. Yet, concerns regarding government abuse and intrusive privacy challenges have somewhat sidelined the concept. Industry insiders advocate that a regulated, privately issued stablecoin poses a better option.