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The new Government of the United Kingdom confirms its interest in “cryptotechnologies”



Source: Observatorioblockchain / Jennifer Maldonado

The current economic secretary of the UK Treasury, Richard Fuller , has confirmed his department’s interest in regulating «cryptotechnologies», which is the name with which he has referred to crypto assets and blockchain. During a parliamentary debate focused on cryptocurrency regulation, Fuller said that while new technologies pose certain risks, they also have the potential to drive innovation, if the right regulatory conditions are put in place. The economic secretary of the Treasury considers that the regulation of crypto assets and the adoption of blockchain will boost the economic growth of the country.

UK and crypto

The UK Treasury will launch an NFT and regulate stablecoins as a means of payment

Fuller’s statements underline the commitment of the Government of the new UK minister, Lis Truss, to continue the path taken by the former finance minister, Rishi Sunak, who competed with her for number 10 Downing Street. In April of this year, when he was still serving as minister, Sunak announced that he would turn the country into a global innovation hub for crypto assets.

Fuller believes that British politicians have been focusing too much on the risks posed by cryptocurrencies and blockchain . While he acknowledged that the industry is highly volatile and there are consumer safety concerns, he also indicated that it has the potential to make a major contribution to the growth and development of the UK economy in general. During his intervention, Fuller highlighted three aspects in which crypto assets are very useful for the country: financial inclusion issuance of digital money (CBDC) and adoption of renewable energies 

Fuller demonstrated great knowledge about crypto

During his speech, Fuller demonstrated extensive knowledge of the crypto industry. He differentiated blockchain technology from distributed ledger technology (DLT) and cryptocurrencies from stablecoins, and these, in turn, from CBDCs. 

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Fuller also indicated that the UK is beginning to explore in depth the many applications and use cases of blockchain and new technologies . Blockchain, «which uses encryption to add security,» is dramatically evolving financial services, he said. The current economic secretary of the Treasury also said that crypto technologies have great potential to optimize government systems or to improve the health, housing and supply chain sectors, among others. “We are developing opportunities in the UK to use blockchain technology in customs and international trade to facilitate the importation of goods,” Fuller said. 

High energy consumption of Bitcoin

Some MPs, such as Abena Oppong-Asare of the Labor Party, condemned the volatility of cryptocurrencies for putting the savings of millions of British investors at risk. The parliamentarian indicated that the expansion of cryptocurrencies, without regulation or supervision, has turned the United Kingdom into «a center of illicit crypto activity.» For his part, parliamentarian Alexander Stafford, from the Conservative Party, recalled the high energy consumption of Bitcoin, but indicated that cryptocurrencies represent an opportunity for everyone.

The United Kingdom will adopt crypto assets and regulate stablecoins as a means of payment

The new Prime Minister of the United Kingdom, the third woman to hold this position in the country’s history, after Margaret Thatcher and Theresa May, seems to be in favor of crypto assets. In the past, when she was Secretary of the Treasury, she stated that the government should not limit the potential of the crypto industry. Thus, although there have been few mentions of Truss on crypto assets and their advantages, everything seems to indicate that the United Kingdom has everything in its favor to become a center of global innovation. Queen Elizabeth II, who passed away on Thursday, September 8, was also in favor of cryptocurrency and blockchain regulation. 

UK calls for Bank of England supervision of stablecoins

Become the home of crypto technologies

Fuller also pointed out that the British government has been looking for ways to gain a competitive advantage in the cryptocurrency space, to become the country for those looking to create, innovate and build in crypto. “ We are already the main European center for financial technology, second only to the United States in the whole world. By making this country a hospitable place for crypto we can attract investment, create new jobs, benefit from tax revenue, create a tidal wave of innovative new products and services and save the UK’s current position ,” he said. 

The US and the UK are working to integrate stablecoins into their financial systems

With the regulation of cryptocurrencies and blockchain, the United Kingdom wants to create a solid technological base that will allow it to take financial services into a new era. The regulation will manage the risks that always come with innovation, Fuller said. He also indicated that the House is in the middle of debating a bill that will bring stablecoins into the current financial system. At the end of the year, the UK Treasury will hold a new public consultation on cryptocurrencies, stablecoins and CBDCs. 

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