The British government has proposed new rules for the governing of stablecoins and tokenized deposits.
The U.K. Treasury set out plans to consolidate payments regulation into a single framework that covers traditional payment services, stablecoins, and tokenized deposits.
The new measures are designed to support innovation and modernize the U.K.’s payments regime while aligning it with changes in digital finance, including blockchain-based settlements.
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Treasury Minister Lucy Rigby said in a statement that the new rules will regulate stablecoins used in payments, while exploring payments involving artificial intelligence (A.I.) agents.
The U.K. Treasury has committed £1 million ($1.35 million U.S.) in funding for the Centre for Finance, Innovation and Technology, to support sector-wide collaboration.
Minister Rigby framed the initiative as part of a broader effort to reinforce the U.K.’s position as a European leader in financial services and payments innovation.
The British government has said repeatedly that it recognizes the “transformative potential” of digital assets and blockchain technologies.
The government efforts in the United Kingdom mirror those in other countries, notably the U.S., where stablecoin legislation is working its way through Congress.
Stablecoins are cryptocurrencies whose price is pegged to another asset, typically the U.S. dollar.
Circle Internet Group’s (NYSE: $CRCL) USD coin (CRYPTO: $USDC) and Tether (CRYPTO: $USDT) are the world’s dominant stablecoins.