John Glenn, the UK’s foreign secretary for financial services, said stablecoins will be the government’s primary focus on cryptocurrency regulation.

Reuters reported that Glenn spoke during a speech at a conference hosted by City and Financial Global on Tuesday.

According to Glen, the UK’s decision to prioritize stable currencies over broader financial market regulation stemmed from concerns about the emergence of market monopolies due to the limited number of participants offering cryptocurrency payment services linked to fiat currencies.

“Some companies have the ability to quickly dominate and drive other players out because of their ability to scale and connect to existing online services,” said Glenn.

The Minister’s argument actually reflects the feelings of many financial regulators regarding the stable Deem project. Regulators around the world, originally called Libra, cited Facebook’s global presence as a significant risk factor for the sovereign monetary policy associated with the proposed digital currency project.

Deem, for its part, has tried to smooth out these organizational wrinkles by making massive design changes. However, Deem still needs to obtain the necessary regulatory approval to start launching its stable currency.

Glenn’s comments are the latest indication that the UK government is focusing on stable currencies as part of an effort to boost new fintech innovation as the country leaves the EU.

In November 2020, Finance Minister Rishi Sunak indicated that Brexit was a watershed moment in Britain’s financial services industry. At the time, Sunak said the government would prioritize leveraging new financial technology innovations such as the central bank’s digital currencies and stable currencies to keep the country on track with the new digital economy.

As Cointelegraph previously reported, the UK’s Fiscal Policy Department has called for public consultations on the proposed rules for cross-border stable coins in January 2021.

Source: CoinTelegraph

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