According to Dante Disparte, stablecoin issuer Circle’s Chief Strategy Officer and Head of Global Policy, the UK is expected to introduce stablecoin regulations within the coming months.
Per a report by Ryan Browne for CNBC, Disparte, who shared his outlook during an interview in London, believes the country will soon establish formal guidelines for stablecoins, which are cryptocurrencies that maintain a stable value by pegging to fiat currencies like the US dollar or British pound.
Disparte emphasized that the UK’s slower pace in implementing crypto laws might have been advantageous, citing events in 2022, such as the collapse of FTX, a once-prominent crypto exchange. He suggested that the UK’s decision to delay regulation helped it avoid some of the market chaos experienced in the past few years.
However, Disparte also noted a shift toward urgency in formalizing stablecoin regulations and other crypto-related rules, warning that without dedicated legislation, the UK risks missing out on the advantages that this technology can bring. He pointed out that the country needs to catch up with regions like the European Union, which has already begun regulating stablecoins under the MiCA framework, and with Singapore, which has also established formal stablecoin regulations.
Disparte highlighted potential benefits of stablecoin technology, such as advances in wholesale banking, real-time payments, and the digital transformation of the British pound. He mentioned that he had recently met with officials from the Bank of England, who are currently exploring the idea of launching a central bank digital currency (CBDC). This potential digital version of the pound, sometimes called “Britcoin,” is part of ongoing discussions about the future of money in the UK.
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