Five associations have formed an alliance to help guide the UK’s digital currency future, through better policies, practice and regulation.
Members of the UK Forum for Digital Currencies (UK FDC) are the City of London Corporation, Digital Pound Foundation, The Payments Association, TheCityUK and UK Finance.
The UK FDC believes the rising interest and adoption of digital money around the world will open many opportunities for the UK to remain competitive in FinTech. By combining the expertise of its members, the association hopes to create a safe and secure environment for innovators to grow and attract international investment into the UK.
To achieve this, the UK FDC will advocate for the development of a diverse, effective and competitive ecosystem for both publicly and privately issued digital currencies in the UK. They will also call for a legal and regulatory framework that promotes innovation while also balancing considerations of financial stability, consumer protection and market integrity.
It will also collectively welcome and support the government’s plan to make the UK a global cryptoasset technology hub, as well as support the development of incentives to better serve stakeholders.
Another initiative from the UK FDC will be to welcome the process and approach established by HM Treasury and the Bank of England regarding retail CBDC and their commitment to partner with the private sector. It will look to become a ‘critical friend’ and partner for this process by coordinating the industry.
The UK FDC also plans to create a constructive bridge between the trade associations representing both incumbents and the new emerging players in the payments sector, which could present challenges and disruption to the traditional financial services ecosystem.
It believes this could mitigate actual risks and alleviate any perceived risks through education and the ability to jointly advocate for appropriate policy and proportionate regulation.
Finally, the body will recognise the diverse constituents each association represents to better develop regulatory framework and understanding the operational impacts, challenges and potential solutions.
This is not the first crypto-related development in the UK this year. The UK National Crime Agency recently revealed it is establishing a specialised crypto unit as part of its National Cyber Crime Unit.
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