Laws for cryptocurrencies may soon be implemented in the UK
Britain could be one of the first countries to introduce legislation for the cryptocurrency industry. Treasury officials in the UK are working with crypto businesses and groups to enact legislation. This will improve the performance of the crypto industry and the government will also get revenue. The Bank of England (BoE) had earlier feared that cryptocurrencies could threaten the financial stability of the UK. The BoE has started deliberations on the Central Bank Digital Currency (CBDC).
CNBC has reported citing unnamed sources that Britain may soon announce rules related to crypto. These rules are being finalized and may be tailored to the needs of crypto people. UK financial regulators expect economic instability due to increased use of cryptocurrencies. The BoE has said that special attention should be paid to reducing the risk of misuse of crypto as it can increase money laundering and other illegal activities.
For information about the advantages and disadvantages of CBDC, the service of Massachusetts Institute of Technology (MIT) is being taken. MIT will conduct a 12-month research project on the advantages and disadvantages of digitizing the pound sterling into a CBDC for the UK economy. The BoE said in a statement that the MIT team will investigate the technical challenges, opportunities and risks associated with designing a CBDC system. After the completion of this research project, BoE will publish information about its findings.
"No decision has yet been taken on whether to launch a CBDC in the UK. This will be a large project. Such technical research will help in policy making on CBDCs," the statement said. In the US, in a recent executive order related to the crypto segment, the Federal Reserve was asked to consider the possibility of a CBDC. Some other countries are also preparing to launch CBDC. Caribbean country Jamaica's CBDC is about to launch soon. Incentives will also be given to the people of Jamaica for its use.
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