The UK’s Ministry of Economic and Finance has stated that it plans to change its current legislative framework to include stablecoins as a payment method.

Following a consultation with numerous organizations, universities, and individuals that began in January 2021, HM Treasury announced on Monday that certain stablecoins might potentially become “a widespread means of payment” for retail customers in the United Kingdom. The government organization in the United Kingdom announced its intention to “take the necessary legislative steps” to incorporate stablecoins into its regulatory framework, “primarily by amending existing electronic money and payments legislation.”

The Finance Ministry stated that modifying its legal framework to accept stablecoins as a payment method was simply one element of a “package of measures” with the aim to integrate digital assets and blockchain technology into the UK. The government body also announced the formation of a Cryptoasset Engagement Group “to work more closely with the industry,” as well as the establishment of a “financial market infrastructure sandbox” with the purpose aim at innovative firms, and the introduction of a nonfungible token (NFTs) released by the Royal Mint in summer 2022.

Mr. Risi Sunak, Chancellor of the Exchequer reportedly commented: “It’s my ambition to make the U.K. a global hub for crypto-asset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country.” He then added that this is part of the plan to make sure the UK financial services industry’s pioneer position in technology and innovation. 

The government will review the possible treatment for crypto lending in the country’s tax system, and consult to see if abroad investors could be exempt from U.K. taxes for crypto transactions conducted on their behalf under the Investment Manager Exemption, according to John Glen, the Treasury’s Economic Secretary. He will also form and lead the Cryptoasset Engagement Group, which will consult with industry and regulatory leaders to provide advice to the UK government.

Mr. Glen reportedly commented: “If crypto technologies are going to be a big part of the future, then we, the U.K., want to be in — and in on the ground floor.” He then carried on stating that the UK always looks for protection for consumers by legislating to bring specific digital assets under the umbrella of ‘financial promotions regulations’

A statement from the UK Government was issued after the FCA announced that it had prolonged the temporary registration status of some companies offering cryptocurrency services after the original March 31 deadline. Additionally, a group of Bank of England and UK regulatory agencies said they were considering cryptocurrency regulation, and in particular ‘welcome’ the Ministry of Finance’s proposal to incorporate Stablecoin into the national regulatory framework.