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06 Apr 2022
The Treasury has announced that it intends to recognise stablecoins as a valid form of payment as part of wider government plans to 'make Britain a global hub for cryptoasset technology and investment'.
The Treasury defines 'stablecoin' as 'a form of cryptoasset that is typically pegged to a fiat currency such as the dollar and is intended to maintain a stable value'. The government plans to bring stablecoins within regulation in order to pave the way for use in the UK as a recognised form of payment.
Hopes are high amongst government officials that bringing stablecoins within regulation will create conditions for stablecoin issuers and service providers to operate and invest in the UK.
Commenting on the issue, Chancellor Rishi Sunak said: 'It's my ambition to make the UK a global hub for cryptoasset technology, and the measures we've outlined . . . will help to ensure firms can invest, innovate and scale up in this country.
'We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term.'