UK Reveals Plans to Legalize Stablecoins During the Queen’s Speech

Prince Charles presented the idea of a crypto bill during the ‘Queen’s Speech‘. Prince Charles addressed the public in the Queen’s stead, citing health reasons. During the Queen’s annual address to the British Parliament, 38 new bills were introduced. The bills covered matters of education, infrastructure, health, and security. One of the bills was related to cryptocurrencies, the regulation of which is in demand due to their increased usage and operations throughout the country.

Prince Charles pointed out that the new cryptocurrency bill would be aimed at “tackling illicit finance, reducing financial crime and helping local businesses grow”.

Economic Secretary @JohnGlenUK announced today that stablecoins will be brought into UK payments regulation.

This places the UK financial services sector at the forefront of technology, creating conditions for stablecoin issuers and service providers to operate and invest. pic.twitter.com/14SsIGW5bf

— HM Treasury (@hmtreasury) April 4, 2022

A Brave Decision in Controversial Times

The decision to adopt stablecoins as legal tender comes just days after the dramatic crash of LUNA and UST, which led to utter turmoil in the crypto world and raised significant concern among specialists. However, the UK Treasury has a vision of “always being at the forefront of technology and innovation,” claims Chancellor of the Exchequer Rishi Sunak.

Nonetheless, the UK treasury does not plan to adopt algorithmic stablecoins such as UST as legal tender, preferring instead to operate using stablecoins that are fully backed with a 1:1 ratio, such as USD Coin (USDC) and Tether (USDT).

The proposed legislation aims to provide local businesses with new growth opportunities and financial stability, while also ensuring that the newest financial technologies are successfully integrated into the country’s everyday life. The topic of the recent stablecoin crash was also tackled as part of the discussion. A spokesperson for the UK Treasury distanced the new bill from algorithm-based cryptocurrencies, such as the notorious LUNA and UST, saying: “The government has been clear that certain stablecoins are not suitable for payment purposes as they share characteristics with unbacked crypto assets.
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Source: #Dailycoincom
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