The plans by the HM Treasury are intended to make the U.K. a digital asset hub while giving due recognition to the risk they pose to investors and the wider financial system.
The Exchequer stated that it had not found enough evidence of unhosted wallets posing a more significant risk for illicit use of digital assets to warrant pushing through with the proposal.
Her Majesty's Treasury stated that it recognizes the potential of stablecoins to drive innovation, but noted that they pose a threat to financial stability should systemic failures occur.
The taskforce will coordinate exploration of the objectives, use cases, opportunities and risks of a potential CBDC, as well as guide the evaluation of its design features, among other responsibilities.
Her Majesty’s Treasury has opened consultation on proposed laws to govern “crypto-assets and stablecoins” until March 21.
