Chancellor of the Exchequer for the United Kingdom Rishi Sunak has doubled down on the need to provide the ample environment for the adoption and growth of digital currencies and Central Bank Digital Currencies (CBDCs) in the nation.
Per his comments at the 2021 Mansion House speech, delivered on Thursday, 1st July, Sunak said the United Kingdom would seek to advance in financial innovations.
The Chancellor highlighted how the United Kingdom pioneered banknotes since the 17th Century, the first regulated stock exchange in the 19th, and the first Automated Teller Machine (ATM) in the 20th Century. Drawing on this, he noted that the region must maintain its lead in pioneering innovations concerning the Digital Pound in partnership with the Bank of England. Additionally, Sunak said it is “consulting on pioneering reforms to support the safe adoption of cryptoassets and stablecoins.
The United Kingdom has a strict stance on digital currencies like Bitcoin (BTC), Ethereum (ETH), and other altcoins, issuing out a recent warning against Binance and other entities and investors backing the cryptocurrency. The Chancellor also said the Treasury department is adequately reviewing the key debates in finance and tech, like the opportunities of distributed ledger technology in capital markets.
“But while I believe in the power of new technology, we also need to manage its impact on our economy and society,” says Sunak, adding that the country’s innovative drivers “will reaffirm the UK’s position as the best place in the world for green finance – the final part of our vision.”
While the UK is currently not an attractive place for crypto startups to build out new businesses as many countries have withdrawn their applications for approval from the Financial Conduct Authority (FCA). the UK Chancellor and other influential lawmakers will have to create the legislation that will address these concerns. Nonetheless, the Chancellor opines that the country is on track to provide this capability.
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