Blockchain for Non-Crypto Activities Considered by UK Authorities

Blockchain for Non-Crypto Activities Considered by UK Authorities

The United Kingdom Finance Ministry announced this week that the nation will begin testing blockchain tech for so-called “traditionally” market activity, meaning everything else but crypto.

Gwyneth Nurse, who is the ministry’s Director-General for financial services, commented that distributed ledger technology (DLT) is the key for future improvements of the financial market infrastructure. DLT will, aside form being an essential building block for the crypto industry, innovate and make markets more user-friendly.

Moreover, DLT will allow for a much faster issuance of financial assets, unlike the current system, for which users have to allow for days or weeks to pass.

DLT test projects will be enabled next year in the UK with the introduction of a financial market infrastructure ‘sandbox’. Nurse claims that this project is specifically catered for the UK market.

Nurse also did not forgo to mention that the Finance Ministry and the Bank of England will be jointly discussing the potential issuance of a digital pound, UK’s answer to a central bank digital currency. However, if a digital pound is approved, Nurse said that it will not be available until sometime the half of the next decade.

Meanwhile, the UK’s FCA warns about the risks of trading with cryptocurrencies, many of which arise from marketing material on social media. The FCA reminds users that all crypto-related promotional material must adhere to the Advertising Standards Authority (ASA).

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