(Kitco News) - Retail consumers in the U.K. will soon be able to access the country’s first 100% GBP-backed stablecoin ($GBPT) via a network of 18,000 ATMs across the country thanks to a partnership between Poundtoken, the company behind the issuance of GBPT, and BitcoinPoint, a Lightning Network-enabled Bitcoin and cryptocurrency exchange.
According to Poundtoken, the GBPT stablecoin is fully backed in pound sterling at all times, with the company providing monthly attestations by auditor KPMG. This development comes as the U.K. is attempting to become a global crypto hub and aligns with the government’s push to use stablecoins for wholesale settlements.
The integration means that Brits will now be able to swap Bitcoin (BTC), Ether (ETH) and GBPT for cash at ATMs across the United Kingdom, allowing users to access retail and wholesale payments using the GBP stablecoin and onramp into crypto using a currency they are familiar with – rather than a U.S.-dollar based stablecoin.
In an interview with Cointelegraph, BitcoinPoint CEO Benoit Marzouk said that the move could democratize “access to crypto for non-tech savvy people in the U.K.,” and is “fully in line with the government’s consideration to integrate stablecoins with the U.K. economy.”
The dominance of U.S.-dollar-backed stablecoins like Tether (USDT) and USD Coin (USDC) necessitated the creation and distribution of GBPT to help give Britons an easier route to crypto adoption, he said.
“The purpose of GBPT is really to bring the blockchain and crypto to the U.K. and make it easier for adoption in the U.K. [...] It's time the UK started to realize its potential as a world leader in Crypto,” Marzouk said.
The ultimate goal is to normalize the use of stablecoins to conduct everyday financial transactions.
|
| Moody's to develop a stablecoin scoring system: Bloomberg |
Hong Kong bans algorithmic stablecoins
In other stablecoin-related news, the Hong Kong Monetary Authority (HKMA) has determined that algorithmic stablecoins pose significant risks and they intend to require that all stablecoins issuers back their value with an equivalent value of reserve assets at all times.
The HKMA released the conclusions of a discussion paper on crypto-assets and stablecoins on Tuesday which summarized the feedback the agency received from 58 respondents.
“Stablecoins that derive their value based on arbitrage or algorithm will not be accepted. Stablecoin holders should be able to redeem the stablecoins into the referenced fiat currency at par within a reasonable period,” the report said. Instead, priority will be given to stablecoins that “purport to reference to one or more fiat currencies.”
The HKMA intends to develop a comprehensive regulatory framework for stablecoins that will include appropriate regulatory requirements in a variety of areas including ownership, governance and management, financial resources requirements, risk management, anti-money laundering and counter-terrorist financing (“AML/CFT”), user protection, and regular audits and disclosure requirements.
It will also require that the value of a stablecoin's reserve assets meets the value of the outstanding stablecoins at all times. “The reserve assets should be of high quality and high liquidity,” the report said.
Entities that conduct regulated activity in Hong Kong, actively market their products to the Hong Kong public, or conduct a regulated activity involving a stablecoin that references the value of the Hong Kong dollar will be obligated to complete the new licensing regime.
Regulated entities are not permitted to conduct activities that deviate from their principal business as permitted under their relevant licenses. For example, wallet operators will not be able to engage in lending activities.
The new requirements are expected to be enacted by 2024 either in the form of new legislation or amendments to the existing laws.
