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<p class="is-style-lead">A report released by the U.K.&#8217;s All Party Parliamentary Group on crypto and digital assets urges the government to carefully consider the introduction of a CBDC, or &#8220;digital pound.&#8221;</p>



<p>In a comprehensive analysis of <a href="https://crypto.news/cbdcs-are-popular-all-over-the-world/" data-type="URL" data-id="https://crypto.news/cbdcs-are-popular-all-over-the-world/">CBDCs</a>, the U.K.&#8217;s All Party Parliamentary Group on crypto and digital assets (<a href="https://crypto.news/british-mp-lisa-cameron-calls-for-cryptocurrency-regulation/" data-type="URL" data-id="https://crypto.news/british-mp-lisa-cameron-calls-for-cryptocurrency-regulation/" target="_blank" rel="noreferrer noopener">APPG</a>) has stressed the necessity for the government to tread carefully when contemplating the implementation of a digital pound. </p>



<p>The report, presented on June 5, pinpointed potential risks related to financial stability, privacy, and security.</p>



<p>The APPG, a cross-party association within the U.K. Parliament that encompasses members of parliament and lords, provides insights and recommendations for decision-makers. </p>



<p>In their report, the group emphasized the need for the introduction of a digital pound to respect and not hinder private sector innovation.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">I’m currently at the Palace of Westminster (London) for the Parliamentary Launch of the APPG Crypto &amp; Digital Assets Inquiry Report which I submitted to several months back. I’m committed to doing what I can for meaningful legal clarity in the UK with regards crypto assets. <a href="https://t.co/zAM0FefVK5" target="_blank">pic.twitter.com/zAM0FefVK5</a></p>&mdash; Morgan (@M0R84N) <a href="https://twitter.com/M0R84N/status/1665712242849992705?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 5, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>The <a href="https://cryptouk.io/appg/#appg-crypto-inquiry-2022" data-type="URL" data-id="https://cryptouk.io/appg/#appg-crypto-inquiry-2022" target="_blank" rel="noreferrer noopener">52-page document</a>, &#8220;Realising Government’s Vision for the U.K. To Become a Global Hub for Cryptocurrency &amp; Fintech Innovation,&#8221; reports on the findings of the APPG&#8217;s year-long inquiry into the digital asset industry&#8217;s status in the U.K. </p>



<p>The inquiry, led by Dr. Lisa Cameron MP, received inputs from a range of industry stakeholders, including operators, regulators, experts, and the public, as part of its aim to understand the necessity of regulation.</p>



<p>Public evidence sessions were also conducted, where industry experts conveyed insights on pivotal considerations for the government to achieve its vision for the sector.</p>



<p>The APPG called for swift action from the U.K. to become a &#8220;<a href="https://crypto.news/heres-how-web-3-0-will-boost-crypto-adoption/" data-type="URL" data-id="https://crypto.news/heres-how-web-3-0-will-boost-crypto-adoption/">global crypto asset technology hub.</a>&#8221; The initiative, first announced in April 2022 by the then-chancellor and current prime minister Rishi Sunak, aimed to foster an environment conducive to innovation and scaling up for firms.</p>



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<p>The report supports these ambitions, underscoring that <a href="https://crypto.news/market-cap/" data-type="URL" data-id="https://crypto.news/market-cap/">cryptocurrencies</a> have the potential to revolutionize the existing financial services system. </p>



<p>However, the report emphasizes that realizing this potential requires comprehensive regulation to safeguard consumers and establish safeguards for economic growth and investment.</p>



<blockquote class="wp-block-quote">
<p>&#8220;Various countries worldwide have promptly developed <a href="https://crypto.news/the-global-crypto-regulatory-outlook-in-2023/" data-type="URL" data-id="https://crypto.news/the-global-crypto-regulatory-outlook-in-2023/" target="_blank" rel="noreferrer noopener">clear regulatory frameworks</a>, offering the necessary clarity that attracts companies. The UK has a limited window of opportunity of 12-18 months to establish early leadership in this sector.&#8221;</p>
<cite>APPG report on CBDCs. </cite></blockquote>



<p>The report advises the government to cultivate conditions that attract investment in the U.K.&#8217;s cryptocurrency and digital asset sector, while simultaneously supporting existing businesses to prevent losing advantages to other jurisdictions.</p>



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<iframe title="The NEW Digital Pound Consultation Paper!" width="1020" height="574" src="https://www.youtube.com/embed/YLUYxFRnSDo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>While acknowledging that the U.K. is in the nascent stages of <a href="https://crypto.news/world-economic-forum-offers-guidance-on-global-crypto-regulations/" data-type="URL" data-id="https://crypto.news/world-economic-forum-offers-guidance-on-global-crypto-regulations/">industry regulation</a>, the report urges continued development of a comprehensive framework providing regulatory clarity, which will be instrumental in attracting inward investment.</p>



<p>While acknowledging that crimes associated with cryptocurrency and digital assets form a relatively small fraction of overall activity, the report warns of the potential for misuse by criminals. </p>



<p>Consequently, the report recommends that the government adopt a balanced, risk-based approach to address potential risks and establish a robust evidence base concerning economic crime to shape its regulatory response.</p>



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UK parliamentary group urges caution over UK CBDC

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