UK undeterred by FTX collapse, crypto hub objective stands

A elder authorities fig has reaffirmed the committedness to crook the U.K. into a crypto hub, contempt the lingering fallout from the FTX disaster.

Since filing for bankruptcy connected Nov. 11, a web of sordid details connected the Bahamas-based speech has travel to light, including accusation connected mismanagement, fraud, and allegations of collusion successful destabilizing Solana competitors.

The knock-on effect has tarnished the cryptocurrency industry’s estimation arsenic a whole.

Nonetheless, successful a briefing to the Treasury Committee connected Jan. 10, Andrew Griffith, the Economic Secretary to the Treasury, maintained that the authorities inactive supports the underlying exertion liable for crypto tokens specified arsenic Bitcoin.

Crypto is the future

The committee meeting’s intent was to sermon the imaginable risks of supporting a pro-crypto policy, particularly successful the aftermath of the FTX collapse.

Griffith said championing cryptocurrency and blockchain exertion present is wide predicted to output economical benefits successful the future.

“a precise wide scope of forecasts successful the marketplace that uncover the benefits to the UK system from embracing crypto assets and its underlying technology, specified arsenic distributed ledger exertion and blockchain.”

He reiterated objectives to crook the U.K. into a halfway for “well-regulated technologically precocious fiscal systems.” At the aforesaid time, this imaginativeness “absolutely [has] room” for cryptocurrency and blockchain technology.

Griffith told the committee that the events of 2022 highlighted vulnerabilities and educated radical connected “some of those practices.”

However, helium maintained that it beryllium mistaken to ditch the opportunities presented by the sector, particularly with a “well calibrated” regulatory oversight to mitigate a repeat. He added:

“It would beryllium incorrect for the UK not to beryllium guardant leaning successful respect to seeking to marque the astir of caller opportunities and making definite that we person a good calibrated regulatory effect that protects consumers.”

As a response, Griffith confirmed that the U.K. has nary volition of handicapping the harmless usage of this caller technology. It seeks to “establish a regime” for crypto assets and stablecoins that volition bring astir maturation and further innovation, including “the wholesale usage of stablecoins.”

When CBDC?

During the discussion, details of the integer lb besides came up. Griffiths confirmed a consultation insubstantial was owed to beryllium released successful the coming weeks.

Soon aft helium was appointed U.K. Prime Minister, a video of Rishi Sunak emerged successful which helium talked astir G7 countries exploring Central Bank Digital Currencies (CBDCs). He stated that, astatine this stage, nary decisions had been made connected whether to property up with them.

Public sentiment toward CBDCs is mostly unfavorable. For example, a caller tweet from Bitcoin Magazine called CBDCs “slavery,” whereas Bitcoin is freedom.

The station UK undeterred by FTX collapse, crypto hub nonsubjective stands appeared archetypal connected CryptoSlate.