Cryptocurrency: No One Is Coming To Save You or Crypto, And That's Ok
grarpamp at gmail.com
Thu Jun 2 02:53:03 PDT 2022
News: Crypto Set to Defund Entire Unloved Brit Monarchy Out Of Existance.
Either or both...
1) BoE is balls deep hodling shitcoin assets, seeks public bailout
2) Adoption is much wider than thought, thus
Queen's neck is on the line to the peasants
3) Regulatory plans to takeover Stables turn them into CBDC's
Sue it, see tx's, shut it down, term-inflation over sub-1%?... if yes,
it's a shitcoin.
Bank Of England To Rescue Collapsing Stablecoin Issuers... (If They're
A new proposal would give England's central bank regulatory oversight
over stablecoin issuers should they pose a risk to financial
The Bank of England yesterday announced it would intervene to direct
and oversee collapsing stablecoins should the British central bank
decide that a stablecoin issuer “has reached systemic scale fail
The news came via a document prepared by the HM Treasury in response
to a cryptocurrency consultation that began in January 2021 and
concluded in April this year.
The British government proposes to amend the UK’s Financial Market
Infrastructure Special Administration Regime to bring crypto within
the jurisdiction of the British central bank while giving the
institution the reins in the event of a collapsing stablecoin.
One proposed amendment also includes broadening the legal definition
of a “payment system” to include crypto, providing the central bank
with regulatory powers under Part 5 of the 2009 Banking Act.
The government clarified that the central bank will only step in
during “systemic” collapses, which it defines as any “deficiencies in
[a system’s] design or disruption to its operation may threaten the
stability of the UK financial system or have significant consequences
for businesses or other interests.”
The exact powers given to the central bank under the amended Special
Administration Regime are largely unclear, though the document
mentions “direction” and “oversight” and provides an example:
“[The Bank of England] must approve the administrator’s proposals
from the outset (and on a continuous basis) and has powers to direct
the administrator to take or refrain from taking specified actions.”
The central bank will be required to consult the Financial Conduct
Authority (FCA) before requesting a special administration order.
The UK and Crypto
Like the United States, the British government has so far taken a
largely hands-off approach to cryptocurrencies, but the market’s
undeniable growth since the 2021 bull run has gradually introduced the
topic of regulation into Britain’s political conversation.
In April 2021, The Bank of England and HM Treasury launched a CBDC
task force to explore the prospect of a central bank-issued digital
currency (CBDC). A CBDC is essentially a state-issued stablecoin, so
in the Bank of England’s case, the CBDC would be a digital sterling.
Around 100 countries are currently exploring CBDCs, according to
Kristalina Georgieva, managing director at the IMF.
In April 2022, the British government also announced plans to become a
“crypto asset technology hub.”
So far, Westminster has taken baby steps to this end, but has
confirmed that stablecoins will be “brought within regulation” so as
to have them used “in the UK as a recognized form of payment.”
The government will issue an NFT this summer in collaboration with the
Royal Mint too.
Last month Sarah Pritchard, the executive director of FCA told
Bloomberg that British crypto regulations will need to take into
account Terra’s historic stablecoin collapse.
"Innovation lasts if it works well, and clearly, we've seen the
consequences and some of the issues that can arise," she said.
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