UK encryption companies urge the formation of the National Stablecoin strategy

The UK must create a citizen Stablecoin A strategy to enable accreditation Symbols And avoid overcoming the United States for new sabotage technology, many disciplines Encryption The companies said Wednesday.

In an open letter to Finance Minister Rachel Reeves, 30 people in the encryption industry said that the UK “must behave now to avoid being standing instead of a bases maker in the era of digital assets.”

“To ensure that the United Kingdom is at the forefront, we believe that there is a need for a proactive and coordinated national strategy – it is a realism that does not pose a risk to commitment, but as a financial infrastructure to adopt it with responsibility,” the letter said.

The UK Treasury was not immediately available to comment when contacted by CNBC.

Stablecoins is a type of cryptocurrency that is linked to a government -backed currency. There are many stablecoins in the version, but the most common are the USDT of Tether and Circle Usdc – both of which are linked to the US dollar.

The entire Stablecoin market is more than $ 280 billion, according to COONINGKO data. But for the British pound stablecoins, the common market value is 461,224 pounds (621,197 dollars).

Those familiar with the encryption industry with Britain’s organizational position on Stablecoins, saying that it puts the emerging industry – and thus the scene of financial services in the United Kingdom – in an uncomfortable situation.

One aspect of the UK’s approach to the industry is the legal definition of Stablecoins as “encrypted costumes with a referring to the FIAT currency.

“This definition focuses on the form instead of the job,” they said in the open letter on Wednesday. “This is closer to determining a check as a paper with reference to the currency, when both are negotiable tools with the support of the two organized sources.”

Signatures on the letter said that the Stablecoin’s national strategy would enhance the role of the United Kingdom as a global financial center, generate new fees, support foreign exchange revenues and support the demand for Gilts through new digital channels.

The message was signed by the executives of the industry from CoinbaseKraken, Copper, Fireblocks, Bitgo and VANECK.

However, Stablecoins is not without their concerns.

In 2022, both Stablecoin collapsed called Terra and Token Token Luna to $ 0 after failure in the basic technology of encrypted currencies. This also caused the USDT to a temporary decrease from PEG $ 1. The USDT value is currently $ 1.

In a research note published on Wednesday, the head of the HSBC digital asset research, Darag Maher, wrote that Stablecoins could help bridge the gap between traditional financing and digital assets.

“They are mainly the monetary equivalent of digital assets,” Maher said. “It is the basic reference or currency of almost all encryption assets. It can also be used to transfer money using Blockchain bars instead of traditional banking methods.”

However, he added that organizational issues are still the biggest obstacle to adopting Stablecoin. Maher said: “The key to benefiting from the capabilities of Stablecoins lies in creating an organizational environment for the sector.”