Chancellor Rishi Sunak said on Monday that to maintain certainty and stability for firms in the UK following its departure from the European Union, they will be
“leading the global conversation on new technologies like stablecoins and Central Bank Digital Currencies.”
For this, the UK will extend its leadership in financial technology, which means remaining at the forefront of technical innovation. Here, Sunak mentions new technologies such as stablecoins, the privately-issued digital currencies which
“could transform the way people store and exchange their money, making payments cheaper and faster.”
However, to harness these benefits, the government will propose a regulatory approach that ensures these stablecoin initiatives meet the same minimum standards as other payment methods.
On the topic of central bank digital currencies, the UK wants to take a “leading role in the global conversation.”
The Chancellor also welcomed the research done by HM Treasury and the Bank of England on whether or how to issue their own digital currencies, which will be “complement to cash.” Sunak said,
“Our plans will ensure the UK moves forward as an open, attractive, and well-regulated market, and continues to lead the world in pioneering new technologies and shifting finance towards a net-zero future.”
In this future of UK financial services, the Chancellor of the Exchequer further emphasized green finance, reforms to the UK listings regime to “attract the most innovative and successful firms,” and to launch a Call for Evidence on its overseas regime.
Additionally, to have the UK’s first Long-Term Asset Fund launch within a year to encourage investment in long-term illiquid assets, such as infrastructure and venture capital.
The idea is to position the UK as a global financial hub by ensuring regulation enhances the UK’s attractiveness to businesses.