British Authorities to Address Concerns with Stablecoin Monopolisation through Regulations

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You are currently viewing British Authorities to Address Concerns with Stablecoin Monopolisation through Regulations

According to the British financial services minister, John Glen, stablecoins will become the leading focus of the governments crypto buying regulatory process due to the intrinsic properties of stablecoins. Tether (USDT) Tokens, which are equivalent to 1 USD, make it simpler for users to exchange crypto.

It’s reported that Glen made his remarks on Tuesday during a conversation at a City & Financial Global conference, stating that “there is the potential for some firms to swiftly achieve dominance and crowd out other players, due to their ability to scale and plug into existing online services,” Glen observed.

The Financial services ministers’ statement does draw a likeness to that of other financial regulators who have spoken against Facebooks Diem stablecoin venture. Diem, previously known as libra, raised concerns from multiple regulatory bodies across several countries, with fears that Facebooks global reach has a major risk factor towards national monetary policies and sovereignty who are part of the initial crypto asset management project.

Diem has attempted to address the issues raised by regulatory bodies by overhauling the project. And yet, on the other hand Diem has not obtained any authorisation from regulators to unveil its stablecoin.

The UK’s Chancellor of the Exchequer, Rishi Sunak, made an announcement in November 2020 that Brexit represented a watershed moment for the United Kingdom’s financial services industry, stating at the time that the government will focus on utilising Fintech systems such as Central Bank Digital Currencies (CBDC) and stablecoins to assure a path to modernisation for the country in the new world of crypto trading. 

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