The United Kingdom’s Treasury Department plans to accept stablecoins as legal tender and bring them within the scope of UK regulation. In legalising stablecoins, the Treasury aims to open up growth opportunities while ensuring financial stability as it facilitates new financial technologies. While welcomed by the crypto community, the announcement of the proposal to proceed with the legalisation and regulation of stablecoins used as a payment mechanism during the Queen’s Speech came against the backdrop of the recent collapse of TerraUSD (UST) and sell-off of other cryptocurrencies. However, the Treasury’s plans to legalise and regulate stablecoins as a means of payment will not apply to algorithmic stablecoins, such as TerraUSD, and will instead apply only to 1:1 fully-backed stablecoins such as Tether (USDT) or USD Coin (USDC).
Sources: https://cutt.ly/9HYrZpG
