The announcement follows the UK's vow to increase crypto adoption in the region.
UK stablecoin is in the works, CBDC may follow
For the UK to become a potential international crypto hub, MP Andrew Griffith has proposed introducing a UK stablecoin before branching out into a possible CBDC.
The stablecoin would also be used for wholesale settlements between banks. Andrew Griffith further elaborated on the UK’s stablecoin plans to the Treasury Select Committee:
I want to see us establish a regime, and this is within the FSMB [Financial Services and Markets Bill, currently being debated in Parliament], for the wholesale use for payment purposes of stablecoins.
It is right to look to seek to embrace potentially disruptive technologies, particularly when we have such a strong fintech and financial sector.
India began testing its own digital Rupee CDBC in November 2022. The Reserve Bank of India made the traditional Rupee available as a digital token that represented legal tender.
Aside from the UK, over 81 countries around the world are also considering or trialling their own CBDCs including Russia, China, Saudi Arabia and Australia.