UK undeterred by FTX collapse, crypto hub objective stands

Hull Invest

Government officials have reaffirmed their commitment to turning the UK into a cryptocurrency hub despite the lingering effects of the FTX disaster.

A web of salacious details about the Bahamas-based exchange have surfaced since it filed for bankruptcy on November 11. This includes information regarding allegations of mismanagement, fraud and collusion in destabilizing Solana’s competitors.

The ripple effect has damaged the reputation of the entire cryptocurrency industry.

Nevertheless, at a briefing to the Finance Committee on 10 January, Andrew GriffithThe Finance Minister’s economy secretary insisted the government still supports the technology underlying crypto tokens such as Bitcoin.

crypto is the future

The purpose of the committee was to discuss the potential risks of supporting policies that favor cryptocurrencies, especially in the wake of the FTX demise.

Griffiths said that advocating for cryptocurrencies and blockchain technology is widely predicted to bring economic benefits in the future.

“A very broad market forecast revealing the benefits to the UK economy of adopting crypto-assets and underlying technologies such as distributed ledger technology and blockchain.”

He reiterated the goal of making the UK the center of a “well-regulated and technologically advanced financial system”.At the same time, this vision is “absolutely [has] Room for Cryptocurrency and Blockchain Technology”.

Griffiths told the committee that the 2022 events have highlighted vulnerabilities and educated people about “some of those practices.”

But he argued that it would be a mistake to throw away the opportunities presented by the sector, especially with “well-coordinated” regulatory oversight to mitigate relapses. he added:

“The UK would be wrong not to be forward-thinking about trying to make the most of new opportunities and ensuring a well-coordinated regulatory response that protects consumers.”

In response, Griffiths confirmed that the UK had no intention of interfering with the safe use of this new technology. It aims to “establish a regime” for crypto-assets and stablecoins that will drive growth and further innovation, including “wholesale use of stablecoins”.

CBDC when?

During the discussion, details of the digital pound also came up. Griffiths has confirmed that his consultation paper will be released in the coming weeks.

Shortly after he was appointed Prime Minister of the United Kingdom, a video of Rishi Sunak appeared, talking about G7 countries considering a central bank digital currency (CBDC). He said at this stage no decision has been made on whether to proceed with them.

In general, public opinion against CBDC is not favorable.For example, recent tweets Bitcoin magazine CBDC is called “slavery” while Bitcoin is free.

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