Oh UK Will begin to test the technology Blockchain As part of its efforts to become a global “digital asset hub”, the finance ministry said on Tuesday that it would trade and engage in traditional market activities such as stocks and securities settling in the coming year.
Gwyneth Nurse, director general of financial services at the ministry, said the use of distributed ledger technology (DLT), which supports cryptocurrencies, is a key priority in transforming the financial market infrastructure into something more innovative and efficient for users.
The nurse said the ministry would launch a financial market infrastructure “sandbox” next year to test DLT projects under the control of regulators, a pioneer for UK regulators to grow Fintech companies. Sandbox is a testing ground for projects that involve real customers.
To us Markets In financial markets, trading of stocks, securities and other assets traditionally involves three distinct functions of trading, settlement and settlement. Using DLT can change that and allow you to issue financial assets such as bonds or stocks in hours instead of days or weeks.
“The government may want to test how trade and settlement can be linked,” the nurse told the annual IDX Derivatives conference. London.
“Sandbox New Regulation will allow you to test best practices and make permanent changes to ensure that market users benefit.”
Under the new Financial Services Bill, which will be introduced in Parliament this year, the sandbox will be introduced with regulation for cryptocurrencies – staple coins supported by traditional assets.
Ministry of Finance and The Bank of England They are jointly evaluating the digital scales with a new public consultation later this year, the nurse said.
But digital scales will not be available until the second half of the next decade, even if the central bank decides to move forward with what is known as the digital currency or CBDC – other central banks are looking at this as well, the nurse said. .
The European Union is finalizing new rules for its own sandbox and cryptocurrency markets.
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