The UK Treasury Department has reportedly disclosed details of its drafting proposals, for the regulation of private stablecoins, and concurrently deep-diving into CBDC for a cash alternative. 

Specifically, U.K. Treasury Chancellor Rishi Sunak reportedly revealed the upcoming proposals for regulation, simultaneously with different aims for the nation’s financial services sector, including a review of the U.K. ‘s listings regime and support for green finance.

“New technologies such as stablecoins – privately-issued digital currencies – could transform the way people store and exchange their money, making payments cheaper and faster.”

The development reportedly surfaced during a week of decisive negotiations between the U.K. and the EU, regarding a trade deal after Brexit, wih Chancellor Sunak reportedly shared his hopes of U.K.’s financial services industry to be the forefront of “the global conversation on new technologies like stablecoins and central bank digital currencies”, stepping into the future. 

“We are starting a new chapter in the history of financial services and renewing the UK’s position as the world’s pre-eminent financial center […] Our plans will ensure the UK moves forward as an open, attractive and well-regulated market.”

The draft will reportedly make it mandatory for stablecoin projects to stay in compliance with the similar minimum standards, as different functioning establishments, employing other means of payments. 

The document additionally disclosed that both England’s central bank and treasury are working towards a CBDC at the moment, with the Chancellor encouraging two agencies to research into “whether and how central banks can issue their own digital currencies as a complement to cash.”