Certain forms of digital currency could soon become available in the UK, considering the fact that some local Government leaders seem to be ready to give them a go. In theory, if some types of cryptocurrency are officially recognised by the Government, the UK gambling sector could start accepting some forms of digital currency, too.
Recently, the UK has unveiled the ambition to become a global crypto-asset technology hub. In order to do that, the country would have to recognise digital currency as a legitimate alternative to regular money.
According to an official announcement made by the country’s Government, the UK Treasury is set to start regulating so-called stablecoins, with the recent moves of the authorities making this objective not simply a hope that they know is hardly achievable. In fact, it was revealed that legislation on the matter is already being drafted, so that stablecoins are officially accepted as a form of legal payment in the country. For the time being, it remains unknown which forms of cryptocurrency are preferred by the UK Government but there are plenty to choose from. Experts have pointed to USD Coin, Tether and DAI as some of the best-known options.
Stablecoins are digital currencies which price is designed to be fixed to a cryptocurrency, exchange-traded commodities or fiat money. On the other hand, stablecoins are directly connected to fiat currencies and are different from other digital currencies because their value is supposed to move in line only with the value of their fiat counterpart. That is exactly why this type of digital currency is hardly affected by some significant fluctuations in value that are normally experienced by other cryptocurrencies, such as Bitcoin.
UK Treasury Willing to Turn the Country into Global Cryptocurrency Tech Hub
According to some experts, the move to recognise cryptocurrencies as a legitimate alternative to regular money would help the UK propel its way forward, as the country would be more easily turned into a global digital currency technology hub as envisioned by the Government. As revealed by Rishi Sunak, the Chancellor of the Exchequer, the apprehensions of the Government to take advantage of cryptocurrency could ensure that the UK’s financial services industry is at the forefront of innovation and technology.
As mentioned above, if the Government’s initiative is given the chance to proceed further, the UK gambling sector could also benefit from the move. In the first place, gambling and digital currency have had close links, and any new decisions of the local Government in that direction could make this relationship even stronger. Digital currency transactions are usually much cheaper and are processed faster than the use of debit and credit cards and bank transfers. On the other hand, cryptocurrencies also make it easier for businesses, including the ones operating in the gambling industry, to eliminate the barriers existing in cross-border payments and expand their global presence.
The UK Treasury has confirmed that some other forms of digital currencies might eventually be allowed in the country after the proposal is thoroughly reviewed by the Government later in 2022. For the time being, no more details on the matter have been unveiled.
According to reports, around 9.8 million British residents hold cryptocurrency, with the figure representing a 6-fold increase from their number in 2018.
- Author
Daniel Williams
