The UK Economic Secretary to the Treasury, Andrew Griffith, has affirmed that the UK is likely to launch a stablecoin in the near future.
Griffith made this announcement while speaking to the UK Parliament Treasury Committee about crypto assets on January 10.
The launch of the stablecoin is part of the UK’s commitment to becoming a global crypto hub.
The stablecoin will be issued by a third-party provider and will primarily be used for wholesale settlements between banks.
The Financial Services and Markets Bill (FSMB) was introduced in July 2022 and is expected to be ready by Easter.
The bill, which passed a second reading in the House of Lords on January 10, will give the Financial Conduct Authority (FCA) the necessary authority to regulate the cryptocurrency industry.
This includes the stablecoin, as well as allowing new payment apps to be licensed and introduced to the market.
The UK government is also planning to launch a Central Bank Digital Currency (CBDC).
This will first be used in settling wholesale transactions, and banks will be in charge of the assets and help users manage their transactions.
To address privacy concerns, Griffith noted that the platform will be anonymized and intermediated by design, meaning the government will not have access to individual transaction data.