UK Cryptocurrency: In order to become a global centre for digital payments, the UK aims to regulate several cryptocurrencies.

The United Kingdom has announced plans to regulate some cryptocurrencies as part of a larger strategy to become a worldwide hub for digital payments, at a time when regulators in the United States and Europe are rushing to draught crypto rules.

Cryptocurrencies have skyrocketed in popularity, prompting governments around the world to scramble to figure out how to control them, fearful that they would jeopardise financial stability and harm consumers.

"The United Kingdom is open for business - open for crypto firms," said John Glen, the Treasury's economic secretary, in a speech on Monday.

Rishi Sunak, the Treasury Secretary, has also ordered the Royal Mint to create a digital collectible known as an NFT as a "emblem of the forward-looking approach the United Kingdom is intended to adopt," according to Glen.

Crypto supporters claim that the technology will make payments faster, easier, and more transparent, while critics fear that it will be used for unlawful activities such as money laundering and would contribute to carbon emissions due to the high computer power required to conduct transactions.

Last month, the US government increased its control of cryptocurrencies, while European Union parliamentarians agreed on draught cryptoasset legislation.

To encourage issuers and service providers to operate and develop in the United Kingdom, Glen said the government aims to change payment legislation to include a kind of cryptocurrency called stablecoins. Stablecoins are typically linked to the dollar or a commodity like gold, making them far less volatile than traditional cryptocurrencies like bitcoin, which can fluctuate dramatically in value.

"Consumers will be able to utilise stablecoin payment services with trust as a result of this," Glen stated, without specifying which stablecoins will be regulated.

Tether and USD Coin are two of the most popular stablecoins, with over 200 in circulation. Stablecoins are frequently used to pay fees on cryptocurrency exchanges or to transmit money across borders.

Sunak has given the Royal Mint until the summer to generate a non-fungible token, or NFT. NFTs generate one-of-a-kind digital artefacts like artwork or sports memorabilia, which can sell for millions of dollars, using a type of encryption technology known as the blockchain.

There are also proposals to investigate the possibility of issuing UK government debt using crypto technology.

According to Glen, the government is now considering "regulating a larger set of crypto activities, including token trading, such as bitcoin," with a consultation planned later this year.

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