UK FCA POLICY REPORT: CROSS-BORDER PAYMENTS ARE THE MOST IMPORTANT APPLICATION SCENARIO FOR A STABLE CURRENCY

On 29 July, Cointelegraph reported that the Stablecoin Spring policy report issued by the British Financial Conduct Regulatory Authority (FCA) showed that cross-border payments were the most explicit recent application of a stable currency, while the domestic retail end of the UK was expected to be slow. Participating agencies have indicated that stable currencies have the most significant emerging market advantage in terms of United States dollar access, but have limited advantage in the main corridors where fast and cheap payment systems exist. Consumers in the United Kingdom lacked the incentive to switch, and the current means of payment were fast enough and cheap enough, but businesses could benefit from cheaper and faster settlements. The feedback was incorporated into the final rule issued by the FCA on 30 June — requiring that the stability currency issued by the United Kingdom be fully endorsed by the reserve assets and redeemed at face value。