Britcoin is ‘likely’, plus face UN anti-crypto influencers
If you thought crypto would be less hectic in 2023, you were wrong.
First, the Treasury Department published a major consultation on how it would regulate digital assets. Here is a summary of the most important points for institutions.
Then on February 6, the Bank of England said it was pressing ahead with plans for a digital pound.
In a new consultation, the BoE and Treasury said they plan to limit holdings to deal with the risk of deposits flowing rapidly out of banks and into Britcoin.
BoE Governor Andrew Bailey said the case for a digital pound “continues to grow”.
Chancellor Jeremy Hunt added: “While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way of paying that is reliable, accessible and easy to use… That’s why we want to examine what is possible first, while always ensuring that we protect financial stability.”
So things are moving forward – but you have to be patient.
The BoE and Treasury said a decision won’t come until the middle of the decade, meaning we won’t see a digital pound until at least 2025.
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‘This is a joke’
Last week, Financial news published its first list of the 20 most influential people in crypto.
We are thrilled with the response. Fidelity’s ex-crypto manager who got a new job the very next day was a particular highlight.
However, you can’t please everyone. Some commentators seemed determined to claim that Goldman Sachs, the Financial Conduct Authority and a former British chancellor are nobody.
A post under the alias “Your Mum” read: “None of these people are known to the crypto world. This is a joke.”
We’ll leave readers to make up their own minds about that.
Now, for crypto haters
Of course, for every yin there is a yang. And in a market as divisive as crypto, it only seemed right to mention the other side of the argument.
From Starling Bank’s Anne Boden to the former finance minister of Chile, we spoke to some of the city’s loudest anti-crypto voices.
Meet the UN’s anti-crypto list here.
Our favorite stories from around the web
The collapse of the terraUSD stablecoin last April finally triggered the crypto winter, and founder Do Kwon is one of Interpol’s most wanted fugitives. Now he is planning a comeback, kryptonyhet reports DL News.
As if things couldn’t get worse, now FTX founder Sam Bankman-Fried is demanding a refund of donations made to politicians before the stock exchange’s spectacular collapse last year, reports Guardian.
Last month, United Nations revealed that Revolut had halted the launch of its cryptocurrency following the FTX scandal. Now the challenger bank is launching a new crypto staking service, reports AltFi.
Crypto regulations ‘desperately needed’
Following last week’s consultation on UK rules for digital assets, a flood of opinion has come in on the matter.
First up is Eva Gustavsson, head of public affairs at the crypto custody company Copper.
She says higher regulatory standards are “desperately needed” and that the paper is a welcome first step in getting there.
Gustavsson writes: “Regulatory cooperation and existing market primacy are central to ensuring that the City of London benefits from the unique opportunities that digital assets provide… The ascent may have been challenging, but the optimistic and constructive nature of the Government’s proposals means we have just arrived closer to climbing the crypto summit.”
To contact the author of this story with feedback or news, email Alex Daniel
