Crypto firms urge UK to form national stablecoin strategy

A few large crypto companies said on Wednesday that Britain should create a national stablecoin strategy to ensure that the getones are adopted and to avoid falling behind the United States in destructive new technology.

In a clear letter addressing to Finance Minister Rachel Reeves, 30 crypto industries, the figure of the Crypto industry, said that the UK should take action now to be a ruler rather than being a rule producer during the digital asset. “

“We believe that a proactive, coordinated national strategy is necessary to ensure that Britain is in the forefront – the risk of involving Stablecoins, but will be embraced as a financial infrastructure.” He said.

When the UK Treasury Ministry of Treasury was contacted by CNBC, it was not available to comment immediately.

Stablecoins is a type of crypto currency fixed to an existing government -backed currency. There are several stablecoins in the publications, but the most commonly known Tether’s USDT and Circle’s USDC – both depend on the US dollar.

According to Coingecko data, the entire stablecoin market is over $ 280 billion. However, the British pound for Stablecoins, the United Market value is only £ 461.224 ($ 621.197).

The crypto industry internal, in relation to the regulatory stance of England on the Stablecoins, the newly emerged industry – and the UK’s financial services environment – said it has put a disadvantage.

One aspect of the UK’s approach to the industry is the legal definition of Stablecoins as “crypto-brings with reference to Fiat currency”.

“This definition focuses on the form instead of function,” he said in an open letter on Wednesday. “This is similar to defining a control with reference to the currency when there are negotiating tools that can be negotiated by both arranged exporters.”

The signatures of the letter said that a national stablecoin strategy will strengthen the role of England as a global financial center, produce new wage and foreign exchange revenue flows, and support GILTS demand through new digital channels.

The letter was signed by industrial managers. CoinKraken, Copper, Fireblocks, Bitgo and Vaneck.

Still, there are no stablecoins concerns.

In 2022, a stablecoin called Terra and his sister Token Luna fell to $ 0 after a failure in the technology underlying crypto currencies. This also caused the value of USDT to temporarily fall below $ 1 Peg. USDT is currently worth $ 1.

In a research note published on Wednesday, HSBC’s President of Digital Asset Studies Daragh Maer wrote that Stablecoins could help fill the gap between traditional finance and digital assets.

Maer, “basically the cash equivalent of digital assets.” “They are reference or basic currency for almost every crypto presence. They can also be used to transfer money using Blockchain salary rails instead of traditional banking methods.”

However, he added that regulatory problems continue to be the biggest obstacle for the adoption of stablecoin. “The key to taking advantage of the Stablecoins potential is to create a suitable regulatory environment for the sector.” He said.