UK Taskforce: Crypto Has the ‘Potential to Deliver Benefits’ to the Economy

The UK’s Cryptoassets Taskforce is commending the potential benefits of cryptocurrency and recommending a balanced approach to regulation.

The committee, which is exploring the pros and cons of cryptoassets to assess what, if any regulation may be required, held its first meeting yesterday.

Senior leaders from the government and financial regulators from HM Treasury, the FCA and the Bank of England attended.

Andrew Bailey, the Chief Executive of the FCA said,

“Cryptoassets have been an area of increasing interest for markets and regulators globally including the FCA. We look forward to working with our counterparts at the Bank of England and the Treasury as part of the taskforce to develop thinking and policy on cryptoassets.”

Dave Ramsden, Deputy Governor of the Bank of England, highlighted the positive aspects of the emerging technology.

“The technologies that underpin cryptoassets have the potential to deliver benefits both to the financial system and to the economy it serves. This taskforce will enable us to work closely with the Treasury and the FCA to explore how the opportunities posed by these technologies can be realised, while also tackling the risks arising from cryptoassets.”

The announcements coincide with the publication of a working paper by the Bank of England to explore the impact of central bank digital currencies (CBDCs). It follows similar initiatives by Norway’s Norges Bank, Sweden’s Sveriges Riksbank and Switzerland’s Federal Council. In Venezuela, the government has created the controversial Petro, a state-sponsored cryptocurrency.