The UK will make stablecoins the official currency

Let`s start with the Foggy Albion For the uninitiated, stablecoins are a special type of cryptocurrency, the value of which is tied to the value of a stable legal tender (also known as “fiat”).

From the first statements of the UK government, it follows that it intends to make stablecoins the same legal tender as the pound sterling. In the result the government intends to take a number of measures to make the UK an international center of cryptocurrencies.

The intentions of the UK government seem pretty clear and firm, but we will have to wait the next few weeks to find out more about how this will work, and whether it will work at all.

Indeed, the UK Treasury has stated that in the coming weeks it intends to pass a law regulating some stable coins as a means of payment.

Meanwhile, while we are waiting for developments on this issue, the regulation of cryptocurrency payments does not seem so far away. But we should not forget that we may not be talking about cryptocurrencies, but about CBDC — digital money of the Bank of England.

DWP Bank and Bitcoin Launch

While Volksbanken and Raiffeisenbanken are more actively engaged in the question of whether or not to be a BTC in the list of services offered, there are already the first institutions in Germany through which Bitcoin is traded, while savings banks are immersed in thought.

DWP Bank may close this gap as early as 2022. The bank, located in Frankfurt, deals in securities for Volksbanken and Raiffeisenbanken, Sparkassen and other private banks. Since more and more young people are trading cryptocurrencies, and this business brings high profits, the use case is obvious for DWP Bank CEO Heiko Beck. In an interview with Bloomberg, he emphasizes that the corresponding project with 25 employees should be completed by the end of the year. Initially, trading will be limited to Bitcoin, as it is the oldest cryptocurrency with the largest transaction volume.

The advantages of integration for banks are obvious. Currently, fintech companies or large crypto exchanges operating internationally are engaged in cryptocurrency trading. Often there are security breaches and fraud attempts that deprive investors of their money. The margin that can be obtained when trading cryptocurrencies is significantly higher than in the classic securities business. Nevertheless, banks see a possible loss of reputation if prices fall and customers have to fear for their deposits.

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