The United Kingdom just voted today to have crypto be a regulated financial instrument. Why is this important you might ask? Well, the House of Commons voted to add the crypto measure into their proposed Financial Services and Markets Bill. This marks the first time and the first country to openly vote to accept cryptocurrencies in their financial markets. The bill includes measures to extend existing regulations to payments-focused stablecoins. These are cryptocurrencies pegged to assets like the U.S. dollar, Euro, Gold or other assets. Now what does this mean for the rest of the world?
United Kingdom’s Crypto vs the World
With the U.K (United Kingdom) voting to accept cryptocurrencies as a regulated financial instrument, it will cause a chain reaction. Many countries vowed to be the first, but it seems like the Royal crown won. Andrew Griffith (Member of Parliament) states “The inclusion of crypto in the scope of the bill will make sure the country’s Treasury is equipped to respond to developments in the crypto sector quickly and deliver regulation in an agile way that is consistent with the country’s broader approach to regulating the financial services sector. With the U.K getting this bill into law, it will force the hands of the other nations to “catch-up”. The United States has been toying with the same notion but many of the political powers at be in the U.S do not seem to understand crypto. The U.K can thank their new Prime Minister for their forward thinking.
The Crypto Friendly Prime Minister
It is not at all shocking that this bill encompassed crypto with Britain’s new Prime Minister. Rishi Sunak originally proposed this under Boris Johnson as his finance minister. Their new Prime Minister is no stranger to promoting crypto. He plans to make Britain/the U.K a “global cryptoasset technology hub”. Rishi Sunak stated “We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term”. This is clearly obvious he is running full speed towards this dream as he helps usher in the new crypto bill. However, he is a huge proponent of CBDC (Central Bank Digital Coins). Many crypto enthusiasts shy away from these tokens.
United Kingdom’s “Britcoin”
Rishi Sunak is planning on creating a Britcoin. The first ever CBDC for a country to be ushered out and used by people or businesses. He envisions for this coin to be ready by 2025 for the whole country. CBDCs make sense on one hand. They are basically a digital version of the dollar, yen, pound or euro. On the other hand, they are easily controllable by authorities and the government. If a malicious power in government takes over, these tokens could then be used to control everyday citizens. They could freeze their entire asset worth without the need of the bank’s approval and put expiration dates on the tokens to force spending. For now, Rishi seems to be on the side of the people for wanting to push Britain into the future.
Returning to Parliament
The new bill has finished in the lower house for Parliament and is headed to their upper house. It is only a matter of time until it comes back across Rishi Sunak’s desk to be written into law. The United Kingdom is the first country to take crypto and run into the future. Which country will be next? Only time and politics will tell.
