The UK will focus on stablecoins in establishing clearer crypto rules, according to economic secretary to the Treasury John Glen.
According to Glen, the UK will focus on stablecoins lest it inadvertently gives some companies the upper hand.
Speaking to a conference hosted by Citi & Financial Global yesterday, Glen said: “There is the potential for some firms to swiftly achieve dominance and crowd out other players, due to their ability to scale and plug into existing online services.”
An intervention in the wider cryptocurrency markets is “less immediately pressing”, Glen continued, as he explained that stablecoins may yet see a global systemic player join the stablecoin space.
The majority of investors right now seem to be espousing Bitcoin, after Visa, Tesla and Morgan Stanley all showed strong interest and even shed a fair bit of money to get involved.
Tesla alone has managed to generate more profit from Bitcoin than it has from an entire year of selling cars.
Still, there are certain aspects that need to be addressed more seriously. For example, Tether, which is the world's leading stablecoin, is still only a fraction of Bitcoin's market size.
Glen argued that Britain would not over-regulate distributed ledger technology which allows cryptocurrency projects to exist.
“We have a once-in-a-generation opportunity here to make vast strides in the efficiency of financial services, and ultimately benefit consumers and the economy as a whole”, he is cited by Reuters as adding.
Stablecoins are some of the most trusted currencies out there and for someone who doesn't want to jump on the cryptocurrency bandwagon right way, they prove a great way to ease into things.