Next year, the United Kingdom will be testing blockchain technology in financial operations like stock trading and bond settlement. According to the country’s finance minister, on June 7, the innovation turned the United Kingdom into a global crypto centre.
According to Gwyneth Nurse, a senior official at the UK treasury’s financial authority, blockchain technology is a valuable means of modernising and enhancing the efficiency of the United Kingdom’s financial markets. The revolutionary innovation has the potential to be a game-changer and might make it feasible to issue securities much more rapidly than currently possible.
Creating and evaluating blockchain-based projects under regulatory oversight will use the sandbox model, an experimental framework that involves real users testing products. This methodology was first adopted by UK authorities to establish fintech startups. Besides, the government intends to implement stablecoin regulation.
The UK aims to prioritise crypto for traditional markets. Image: FT montage/Charlie Bibby
However, industry leaders think that a suitable digital currency is required to utilise the numerous benefits of blockchain technology inside the market architecture. However, according to ministry sources, work on the digital pound is already starting, with both relevant institutions, the Bank of England and The Treasury, conducting a joint study of the digital pound, which will be shown to the public later this year.
However, Nurse was quick to dampen the excitement of enthusiasts, stating that the digital pound would not be worth waiting for until 2025.