According to a government official, the U.K. is considering introducing a digital pound as part of its ongoing commitment to becoming a hub for cryptocurrencies.
The United Kingdom is getting ready to start consultations on digital pounds.
According to Economic Secretary to the Treasury Andrew Griffith, the executive branch in London is thinking of introducing a digital form of the money, the BBC reported.
Speaking to the legislative Treasury Select Committee, he said that a public consultation on the characteristics of a digital pound will begin in the upcoming weeks.
Many public policy questions are raised by a digital pound, and Griffith said that the government must “get them right.”
Griffith went on to say that wholesale settlements would probably be the first use for a central bank digital currency (CBDC) produced by the Bank of England, but he also acknow، Economic، cryptocurrencies ledged that a privately issued, fiat-backed stablecoin “would probably get there first.”
In reference to the Financial Services and Markets Bill, which is presently being discussed in the British Parliament, the minister said, “I want to see us build a regime, and this is within the FSMB, for the wholesale use for payment purposes of stablecoins.”
Furthermore, Andrew Griffith disclosed that a new consultation will be started on the U.K.’s regulatory strategy for crypto assets generally.
The minister noted that while the EU has already reached an agreement on a set of thorough regulations for the market that are scheduled to go into effect in 2024, the U.K. regulations may be even more comprehensive and include decentralized finance.
The observations made by Andrew Griffith follow the decline in the value of well-known cryptocurrencies like bitcoin last year and the subsequent failure of significant market participants like the cryptocurrency exchange FTX.