A debate has erupted in the UK over the Bank of England’s plans to restrict the ownership of stablecoins — cryptocurrencies pegged to the dollar, euro, or other stable assets.
The regulator fears that if people transfer their money from banks to such digital assets en masse, it could hit the banking system. Therefore, a limit is being discussed: for ordinary citizens — no more than £10-20 thousand (approximately $13.6-27.2 thousand), for companies — up to £10 million.
If the decision is adopted, the UK will become one of the strictest countries in regulating stablecoins — stricter than the US and the EU.
Representatives of the crypto industry consider such steps harmful. According to them, the restrictions will reduce the country’s attractiveness to investors; it will be more difficult and expensive for people to use digital currencies; the control system itself will prove to be too complex and costly, as stablecoin issuers do not know who owns their tokens at any given moment.
“The introduction of limits will hit depositors, the City of London, and even the pound,” said Coinbase Vice President Tom Duff Gordon. “No other major country has introduced such measures.”
Supporters of stablecoins emphasize that they could make international transfers faster and cheaper.
The Bank of England responds that the restrictions will be temporary — to give the financial system time to adjust to the new digital money market. “A massive outflow of funds from banks could lead to a reduction in lending to businesses and the public,” explained regulator representative Sasha Mills.
Finance Minister Rachel Reeves has previously stated that the government will support the development of blockchain technologies, including the use of stablecoins.
The global market for these digital currencies is currently estimated at approximately $288 billion.
The UK is preparing to sign a “groundbreaking technology agreement” with the US during President Donald Trump’s state visit next week, Bloomberg reports, citing the UK government.
“Advanced technologies such as artificial intelligence and quantum computing will change our lives. This includes new ways of treating diseases, as well as improving public services,” said UK Technology Minister Liz Kendall.
According to the publication, Trump plans to arrive in the UK on Tuesday for his second state visit, which will last three days. He will be accompanied by a delegation of American business leaders, including executives from Nvidia Corp. and OpenAI.
“During the visit, American companies Nvidia, OpenAI, CoreWeave, and BlackRock will announce multi-billion dollar investments in British data center infrastructure,” the report said.
The US and the UK already cooperate in the fields of artificial intelligence, semiconductors, telecommunications, and quantum computing.
Ukrainian President Volodymyr Zelensky is expected to pay a visit to Veliobritain next week, The Guardian reports.
According to the publication, Zelensky will also make his first visit to Ireland on Saturday morning. He is scheduled to meet with Irish Foreign Minister Simon Harris there.
Ireland, which has long maintained a policy of military neutrality but has provided non-lethal aid to Ukraine, is expected to offer more support. In particular, it will support Ukraine’s efforts to return some 20,000 children who were forcibly displaced to Russia and Belarus.
The Ukrainian president met with British Prime Minister-designate Keir Starmer at the NATO summit in Washington last week, but this will be his first opportunity to meet with a wider delegation from the Labor government, which will be keen to confirm further UK support.
The conference is reportedly the fourth meeting of the European Policy Community, a collective set up after Russia invaded Ukraine in February 2022, which was the brainchild of French President Emmanuel Macron.
“It is designed to foster stronger ties between EU and non-EU leaders in an informal setting. Previous conferences have been held in Spain, Moldova and the Czech Republic,” it said.
In addition to the UK, non-EU countries invited include Norway, Iceland, Georgia, Kosovo, Serbia, Albania and Turkey, although Recep Tayyip Erdogan, Turkey’s president, who has not attended previous summits, has not confirmed his participation.
Deputy Foreign Minister of Ukraine Yevhen Perebyinis has accepted copies of his credentials from the new Ambassador of His Majesty the King of the United Kingdom of Great Britain and Northern Ireland to Ukraine, Martin Harris.
According to the press service of the Ministry of Foreign Affairs of Ukraine, Perebyinis congratulated the Ambassador on the beginning of his diplomatic mission in Ukraine, expressing hope that his work in our country will contribute to further deepening of Ukrainian-British relations.
“The interlocutors discussed the full range of issues of cooperation between Ukraine and the United Kingdom, exchanged views on concrete steps to deepen cooperation in the context of Ukraine’s course towards NATO membership, as well as the implementation of international initiatives to support Ukraine,” the statement said.
The parties paid special attention to the issue of strengthening sanctions pressure on Russia and the functioning of the Black Sea “grain corridor” to ensure global food security.
The Deputy Minister thanked the UK for supporting Ukraine and strengthening the country’s defense capabilities.
Earlier, the British government announced that Martin Harris will become the British Ambassador to Ukraine, replacing Melinda Simmons, and the rotation will take place in September 2023.
Martin Harris already worked in Kyiv in 2003-2008 and held the position of Deputy Ambassador and Consul General.
Melinda Simmons has been head of the British diplomatic mission in Ukraine since 2019. She will continue to work in the diplomatic service in another position.
Ambassador of Ukraine to the United Kingdom Vadym Prystaiko, on behalf of the Cabinet of Ministers, signed a Ukrainian-British framework agreement providing for the allocation of funds for the construction of eight missile boats, the acquisition of two minesweepers from the United Kingdom, and the creation of two naval bases in Ukraine, the ZN.UA publication said on Saturday.
The signed agreement details the financial side of the agreements, that is the loan totaling GBP 1.7 billion provided to Ukraine by the U.K. for ten years.
Thanks to the U.K., Ukraine covers the primary needs of the country’s naval forces, which must be ready to contain Russia’s aggression from the Black and Azov Seas, ZN.UA said.
Agreements on the development and strengthening of the Ukrainian Navy were reached a year ago. During the last year’s visit of Ukrainian President Volodymyr Zelensky to London, a memorandum on strengthening cooperation between Ukraine and the United Kingdom in the military and military-technical sectors was signed. The memorandum stipulated the raising of financing from the UK’s export credit agency in the amount of GBP 1.25 billion. In the summer 2021, in Odesa, a memorandum on maritime partnership projects between the consortium of British industry and the Ukrainian Navy was signed.
Since October 11, citizens of Ukraine have the right to visit France, who have completed a full course of vaccination with Johnson and Johnson, AstraZeneca, Moderna, Pfizer, R-Pharm, and seven days have passed since the last dose was received (28 days Johnson and Johnson), the State Border Guard Service of Ukraine has said.
According tothe State Border Guard Service’s statement in the Telegram channel on Monday, the United Kingdom has recognized Ukrainian vaccination certificates and from October 11 will accept Ukrainian citizens who have completed a full course by Johnson and Johnson, AstraZeneca, Moderna and Pfizer medicines.
