In the UK, you will legally pay with stablecoins

Safe cryptocurrency payments are finally to be regulated in Great Britain. It's part of a larger bill that the Treasury Department is working on, and the legislative action has nothing to do with the recent turmoil in the cryptocurrency market.

Probably everyone who is even a little interested in cryptocurrencies knows perfectly well that in recent weeks it is mainly about Terra environmentbased on this system the Luna cryptocurrency and above all stablecoin UST. As a result of a coordinated market attack, it lost its peg (i.e. 1: 1 convertibility against the US dollar) and entailed not only a huge drop in the price of Luna (from $ 100 to a few decimal places before one cent), but also a loss of confidence in the entire cryptocurrency market and drops in prices of virtually all coins.

However, this is history, because the cryptocurrency market is still laboriously forward. According to some commentators, an obstacle is the lack of regulations on the market, which would slightly civilize it. But this is also slowly changing in other countries. 

United Kingdom: stablecoins legal tender

The United Kingdom is just joining the group of those who seriously want to save almost all the possibilities of using cryptocurrencies. Although there are websites and systems on its territory, such as bitcoin smarter, which allow you to safely buy cryptocurrencies, but daily payments - although formally possible - are still rare. 

However, thanks to the work of the UK Treasury Department, this is set to change. If you believe the assurances of officials - and there is no reason not to - the adoption of cryptocurrencies in the British market can significantly accelerate. A law is being drafted that will make stablecoins legal tender in the UK.

The regulations are to cover the entire stablecoin market: from creating favorable conditions for service providers and issuers of stablecoins, through ensuring their stability and  reliability, to taking care of the safety of the offered instruments and their buyers.

However, the act is not only to regulate the stablecoin market, which will become legal tender. It will also cover other aspects of financial services and markets. 

Stablecoin regulation? The industry is satisfied

A few years ago, the cryptocurrency industry reacted allergically to the word "regulations", arguing that it was to be money free from tracking and any outside interference. Over time, however, this approach began to change. The biggest players started to want cryptocurrencies not to be seen as a source of anonymous transactions, by means of suspicious sources, among shady people. And this cannot be achieved without at least partial regulation of the market. 

Therefore, with the passage of time and a deeper understanding of this problem, the regulations were not only not disturbed by serious players, but more and more often they were even expected. The announcement of changes in Great Britain was adopted no differently. Especially since the British Department of the Treasury has announced that it wants the London-based financial industry to remain a leader in global markets, especially in the face of the rapid changes that are taking place thanks to the spread of blockchain technology. 

However, there is one "but". Only those stablecoins that are secured with real fiat currencies or, for example, bonds, will be covered by security and regulations. Algorithmic Stablecoins - that is, such as, for example, UST - will not be placed under the umbrella of financial services.

So there is no doubt that these changes will increase confidence in stablecoins and the cryptocurrency market as a whole, which is very much needed at the present time. For now, however, the details of these regulations are not known, but it is hoped that they will not be a limitation, but a help for the dynamically developing cryptocurrency market.