British Treasury Is Against the Legalization of Algorithmic Stablecoins

The British Treasury, in the Financial Services and Markets Bill, introduced rules to regulate stablecoins as a payment mechanism. However, the innovations do not apply to algorithmic stablecoins.

According to The Telegraph, a Treasury spokesman noted that the decision to supplement the document was announced in a speech of Queen Elizabeth II dated May 10, 2022, which was read before Parliament by Prince Charles.

In the address, Prince Charles announced the introduction of new legal regulations in various sectors and measures to stimulate economic growth to improve living standards in the UK.

According to the statement, the bill aims to further strengthen the powers to combat illegal financing, reduce economic crime and promote business growth.

Algorithmic stablecoins are not included in the document, as they do not guarantee stability. According to the UK government, some stablecoins are not suitable for payment purposes because they share characteristics with fiat crypto assets.

Earlier, the UK Government Treasury asked the Royal Mint to create an “emblem of UK forward thinking” in the NFT before the end of the year.

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