A Treasury official supported the Truss government’s plan to make the UK “a global hub of crypto technologies.” According to Richard Fuller, Economic Secretary to Treasury, the UK hopes to “become a country of choice for people looking to create and innovate in the crypto space.”
Fuller stated earlier in the week that, as crypto technologies become more important, the new government created by Liz Truss “seeks ways to gain global competitive advantage for Britain” in the Westminster Crypto Debate.
He stated that the UK could either watch as the technology transforms many aspects of our lives or it could be the best place to scale and start crypto technologies. “We want the UK as the global leader in crypto technology. We will leverage the strengths of the UK’s fintech sector to create new jobs and develop innovative products and services.
Fuller was named the new Economic Secretary of the Treasury in July after John Glen’s resignation. He also retained his position in the new cabinet. Fuller said that the government is committed the Financial Services and Markets Bill, which recently passed legislation that proposes major changes in the regulation of UK financial services. This includes the creation of a regulatory framework for stablecoins.
According to a Treasury official, the bill will enhance the regulatory framework by adding the ability to “harvest” stablecoins’ benefits to lower costs and improve service.
Fuller said, “At the time, we will protect customers by ensuring the face value stablecoins are backed by underlying funds and consumer funds will be protected if a stabilizecoin provider becomes bankrupt.
United Kingdom attracts crypto investors
Alexander Stafford, a M.P. For Rother Valley, Alexander Stafford, an M.P., said, “Britain has already been world-renowned for its beating heart of finance and banking, so it’s only natural that crypto looks to Britain as its home.”
Stafford stated that “Britain should embrace the investment opportunities of crypto,” and added that Truss was sworn into office on Tuesday after Boris Johnson’s resignation. She already “reaffirmed” her support for this fast-growing sector.
“Crypto is a great opportunity for all, Truro, Thurcroft, Rother Valley and all the way to Scotland and Northern Ireland. Stafford stated that if we address the issues of education and regulation first, we can have a thriving industry in the UK.
Fuller agreed and said that by making the country a welcoming place for crypto technology, we can attract investments, generate new jobs and benefit from tax revenues. We can also create a wave a groundbreaking new products, services and bridge the current U.K. financial service sector into a new era.
Are there enough reasons for optimism about the UK’s ambitious goals to smile? Experts believe so, despite the potential pitfalls.
UK has been the center of finance for many years
“The UK has been a major center for global banking for hundreds upon centuries. It is not impossible to be a major global hub for crypto technologies using a forward-looking and sensible framework,” Bradley Duke (CEO of the ETC Group in London) told decrypt.
However, he warned about areas where “there is cross-over between crypto and traditional financing.”
Duke said that these are the areas to be watched in light of the extensive European financial services regulation.
The Financial Stability Report was published by the British central bank earlier this year. It highlighted the sharp decline in crypto valuations after the huge sell-offs of May and June.
The Bank of England stated that the wipeout did not pose any risks to financial stability, but that it was necessary to pass stronger laws to ensure the financial system’s continued safety.