UK Takes Further Steps and Plans to Deploy Blockchain in TradeFi
The United Kingdom will next year begin testing blockchain technology in traditional finance operations such as stock trading and bond settlement. The innovation’s main mission is to establish the United Kingdom as a worldwide crypto hub, announced the county’s finance ministry on June 7.
According to Gwyneth Nurse, one of the top people in the UK Treasury’s financial authority, the implementation of blockchain is a major way to modernize and improve the efficiency of the United Kingdom’s financial markets. The revolutionary innovation has the potential to be a game changer and could make it possible to withdraw securities much faster than now.
The process of launching and testing projects using the blockchain under regulatory supervision will use the sandbox model, an experimental framework for testing projects involving real customers. This is the same model that UK regulators first applied to the development of fintech companies. In addition to the sandbox model, the authorities also plan to introduce stablecoin regulation.
Digital Pound on the way?
However, industry representatives believe that in order to take advantage of the various benefits of blockchain technology within the market infrastructure, a proper digital currency is needed. According to ministry officials, although work is already underway on the digital pound case, both the institutions responsible, the Bank of England and The Treasury, are engaged in a joint evaluation of the digital pound, which will be taken up for public debate later this year. will be presented for
Nurse, on the other hand, was quick to quell the enthusiasm of those interested, saying that the digital pound is not worth waiting until 2025.