Cryptocurrency: UK Treasury to regulate some stablecoins

The article can be found here: https://www.bbc.com/news/business-60983561

“So-called “stablecoins” will become recognised forms of payment to give people confidence in using digital currencies, it said. Stablecoins are designed to have a stable value linked to traditional currencies or assets like gold. They are considered less volatile than cryptocurrencies such as Bitcoin.”

Following the presentation on NFTs, this is an interesting example of another jurisdiction’s steps to regulate the risks posed by the NFTs and their potential for fraud. It’s particularly interesting that Stablecoins *have a connection to traditional currencies*. One of the points of discussion was that, by regulating blockchain technology, we lose out on the advantages (eg. Decentralization, Anonymization) of blockchain technology in the first place. However, given the unmitigated risks that we talked about, average consumers will likely be hesitant to enjoy the advantage of blockchain anyway. I agree that some form of regulation towards blockchain technology will be necessary to make them viable and safe, even if it comes at the cost of the defining traits of the technology itself.

– Uma Wu

Leave a Reply

To use reCAPTCHA you must get an API key from https://www.google.com/recaptcha/admin/create