Pushing the UK towards the crypto framework

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In the push towards cryptocurrency regulation, a fragmented approach still reigns. Depending on where you look, there are outright bans (in China), while other countries, like the United States, are developing crypto frameworks.

See: Stablecoins Under the Microscope as US Preps Digital Currency Framework

Theres at least a prologue to what could be and indeed what could be. In June, the Basel Committee on Banking Supervision said it was collecting preliminary ideas on banks’ exposure to digital assets. These (possible) executives would affect group 1 crypto-assets, which include some traditional tokenized assets and stablecoins, and group 2 crypto-assets. Bitcoin is cited as an example of a group 2 crypto-asset. ‘subject to additional conservative treatment due to higher perceived risks. It is important to note that central bank digital currencies (CBDCs) are not part of the discussions, which in our opinion means that the road is becoming increasingly clear for the issuance of CBDCs.

Read more: Basel Committee explores crypto-asset regulation for banks

Take a step back (already)

The emergence of these mandates has already been rejected by several banks in the United States and Europe within the framework of the Global Financial Markets Association. These financial institutions (FIs) argue that the consultation’s proposals are too conservative and would (according to a letter from the association) prevent banks from holding cryptos.

Read here: Bank bosses oppose Basel crypto mandates

In a signal that it may be urgent to put these safeguards in place, Reuters reported last week that Sam Woods, deputy governor of the Bank of England, is sticking to recent rules coming out of Basel and will enforce these rules in the UK, if it is perceived that banks do not have the capital backing to tackle crypto.

We wouldn’t want to stop companies from doing things that make business sense, but we would take a very conservative view of the treatment of capital, and if necessary, therefore we would be on the front lines, maybe not exactly the same, but we would put some capital measures in place, Woods told Reuters, according to last week’s report.

The statements, it should be noted, show a determination to put in place a structure even in the face of certain banking / regulatory hesitations seen elsewhere in the world. In other words, at least temporarily, Britain would be ready to stand in the front (maybe alone?) As the rules take shape. This could lead, at least in the short term, to even more fragmentation, as the UK waits for others to catch up and implement the same rules.

Recent data from PYMNTS shows the interest multinational companies and FIs that serve them have in the cryptocurrency space. Up to 58% of multinational companies use crypto to transact and / or maintain their balance sheets. About 10% of FIs provide access to crypto, and 73% of FIs plan to expand access to crypto-related products and services over the next 12 months.

Read more: 58% of multinational companies use cryptocurrency

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NEW PYMNTS DATA: TODAY’S SELF-SERVICE PURCHASING JOURNEY – SEPTEMBER 2021

By the way: 80% of consumers want to use non-traditional payment options like self-service, but only 35% were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a collaboration between PYMNTS and Toshiba, analyzes over 2,500 responses to find out how merchants can address uptime and perception issues to meet the demand for open kiosks -service.

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