The UK Treasury has shared its plans to regulate stablecoins for use as a means of payment. A stablecoin is a cryptocurrency whose value is pegged to an existing currency like the pound, euro or dollar. For example, 1 USDC is worth 1 dollar (with very slight fluctuations in the order of a penny).
The advantage of stablecoins is that you can enter the world of cryptocurrency without being subject to its speculative aspect.
The idea for the chancellor is, according to the ministry, to ensure that “the UK financial services sector is always at the forefront of technology and innovation,” and these recent decisions are part of a broad plan to make Britain a “global center” for cryptocurrency technology.
As a reminder, NFT stands for non-fungible token. A non-fungible object is a unique object that is not interchangeable. For example, money is fungible, you can exchange euros or cryptocurrencies.
An NFT refers to a digital file to which a digital certificate of authenticity has been attached. More precisely, the NFT is a cryptographic token stored on a blockchain. The digital file alone is fungible, whether it is a photo, video or other, the associated NFT is non-fungible. The first NFT was created in 2014, but NFTs didn’t really hit the mainstream until 2017, when the Ethereum platform gained momentum.