The UK government has reiterated its commitment to the country becoming a global crypto hub and is considering introducing a "digital pound," BBC reports (opens in new tab) that the secretary of state for treasury and the economy, Andrew Griffiths, told MPs that a public consultation on the proposed national currency will begin within weeks. would be launched, he told MPs.

The current administration is conservative, but apparently not too conservative on this matter, as Griffiths told the Treasury Select Committee: "In the Financial Services and Markets Bill, I want to see a regime established for the wholesale use of stable coins for payment purposes. We would like to see the establishment of a regime for the wholesale use of stable coins for payment purposes in the Financial Services and Markets Bill."

Stablecoins are crypto assets designed to be of equal value to traditional currencies and other assets. It should be noted that stablecoins, like any crypto asset, have the potential for a crash of epic proportions.

"Central banks around the world are developing or exploring digital currencies," Griffiths said.

"Especially since the fintech and financial sectors are so powerful."

Disruptive, or ...... It's time to play the bullshit bingo card. Griffiths went on to talk about "game-changing technology" and its intent to "turbo-charge" the existing financial industry. A few years ago, all of this might have been acceptable, but after the crypto catastrophe of 2022, many would have viewed such words with skepticism.

However, much of the current focus is on regulation rather than jumping in, and the UK is somewhat behind Europe in this area, as the EU has developed the world's first comprehensive rules to regulate the crypto market, which are currently in the final approval process and will take effect in 2024.

Griffiths acknowledged these and suggested that the UK rules could be broader and more transparent. Griffiths indicated that there will be another public consultation on the future regulatory approach to the UK crypto market, but that it is in the "research and exploration" stage, with a vague timeline of several years before results are known.

The UK's "strong financial reputation" means this will be a "long lead-time activity," Griffiths said. 'We want the right regime, operated in the right way, with the right balance in place.'

Given the UK government's recent management track record, from Covid to the current mass strike, I am not optimistic that they will get it right on crypto. While the EU's move toward tighter regulation is clearly behind this, it is arguably the U.S. that is having a greater impact. In the U.S., President Joe Biden last year ordered government agencies (open in new tab) to prepare a report on the regulation of the crypto market and begin to consider: also exploring the possibility of a "digital dollar". Given the number of stable coins pegged to the U.S. dollar, I would actually like to see a government-issued digital dollar.