CBDCs and Stablecoins center discussion between US and UK; signs of regulations ahead?

Since the emergence and later wide adoption along with increasing acceptance of crypto assets, regulations remain one of crucial requirements

On Wednesday, 29th June, two prominent countries and economic superpowers, the United Kingdom and the United States of America gathered around for a meeting at the UK Financial Innovation Partnership (FIP) event held in the capital city, London. This was the third gathering of the Regulatory Pillar of the FIP where the participants met and exchanged their thoughts. 

Common topics of mutual interests between the US and UK include cryptocurrencies market developments and the digital assets industry regulations. Along with this, it had a discussion regarding the efforts to make stronger bonds between both countries in terms of financial innovation. This gathering came before the meeting of a financial working group from both the United States and United Kingdom scheduled to take place later this month. 

The Financial Innovation Partnership was created in May, 2019 where it was intended to encourage collaboration among the private sector, share expertise and information about the common regulatory practices and to promote growth and innovation. 

Meeting on Wednesday included participants from prominent authorities from both sides. From the United Kingdom, it included staff members from the Bank of England and also from the Financial Conduct Authority (FCA). 

While from the United States, the meeting was joined by staff belonging to independent regulatory firms including the Federal Reserve System’s Board of Governors, Federal Deposit Insurance Corporation, Office of the Currency Comptroller, Commodity Futures Trading Commission and Securities and Exchange Commission. 

Other than crypto assets regulations and their market, participants at the FIP also considered the importance of their continued corporation for both cryptocurrencies and digital assets. Specifically, there were an appeal for corporation at international organizations like the G7 Digital Payments Working Group, Regulator Issues of Stablecoins and Financial Stability Board Crypto Assets Working Group. 

Apart from this, efforts towards the cross-border payments infrastructure enhancements Roadmap by G20, Payments and Market Infrastructures Committee, Bank for International Settlements, and a bunch of different countries’ Central Banks working together for CBDCs developments and Fintech Task Force of International Organization of Securities Commission. 

These topics were among the most crucial ones participants intended to engage in the most, along with other financial innovation topics with mutual interest. This also came in the wake of efforts toward supporting the upcoming meeting of the US-UK Financial Regulatory Working Group, scheduled to happen by July this year. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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