Following an announcement by the Treasury in April of its intentions to make the UK a cryptocurrency hub, stablecoin company Tether has announced the launch of a GBP-pegged coin (GBPT) in July.
According to the company, the Ethereum blockchain network will be used to support the stablecoin (GBPT) at first.
Stablecoins are cryptocurrencies pegged to the value of another fiat currency or exchange-traded commodities such as gold or precious metals. They are considered relatively efficient in making payments compared to the high volatility of Bitcoin (BTC) and altcoins (ALT).
This new GBPT stablecoin will be the fifth fiat-pegged stablecoin from Tether, joining the US dollar-pegged USDT, euro-pegged EURT, Chinese yuan-pegged CHNT, and Mexican peso-pegged MXNT.
In addition to the Treasury’s aim to make the country a global hub for crypto, the UK government has also said it will take steps to make stablecoins a valid and acceptable legal way to pay.
“The creation of GBPT will put British pounds on the blockchain and provide a faster, less costly option for asset transfers,” Tether said.
According to the Official Tether blog, GBPT will be a stable digital asset that will operate under Tether.to, and tied 1:1 to the British Pound Sterling. The company also said that the same group of technical developers who developed GBPT were the same ones who developed the Tether USD.
In a statement, Paolo Ardoino, CTO of Tether, said: “We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer.”
Back in April, Chancellor Rishi Sunak set out a raft of plans “to make the UK a global hub for cryptoasset technology”.
The Chancellor said stablecoins would one day be accepted in the UK and the government has set up a new group to engage with the crypto industry. A ‘sandbox’ allowing startups to innovate under the watchful eye of regulators to speed acceptance was also announced and the Royal Mint has been told to make a non-fungible token (NFT) in a symbolic move.
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