United

Prime

Resistance

The United Kingdom’s city minister, Tulip Siddiq, has advocated for introducing blockchain-based gilt, a form of government bond issued via blockchain technology.
The push toward “digital gilts” comes despite the resistance expressed by the UK’s Debt Management Office (DMO), which expressed concerns over the move’s readiness and feasibility.
Proponents argue that adopting blockchain tech for government bond issuance could modernize the UK’s financial markets and enhance the country’s global standing in digital assets.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/telegram-wallet-restricted-uk-users-fca-restrictions" rel="null" target="null" text="null" title="null">Wallet in Telegram app temporarily blocked for UK users due to restructuring</a>
<h2 id="blockchain-based-government-gilts">Blockchain-based government gilts</h2>
Siddiq’s push for digital gilts stems from a desire to ensure the UK does not fall behind its international peers in embracing blockchain technology for financial advancement.
Advocates of the move claim that blockchain gilts could simplify and improve the bond issuance process by eliminating intermediaries, including registrars and transfer agents.
The move would improve the transparency of ownership tracking and help the country establish itself as a leader in the steadily growing digital asset industry.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sorare-uk-gambling-commission-unlicensed-gambling" rel="null" target="null" text="null" title="null">UK Gambling Commission charges Sorare for unlicensed facilities</a>
<h2 id="resistance-from-uk-debt-management-office">Resistance from UK Debt Management Office</h2>
The UK DMO, tasked with issuing and managing government debt, has resisted Siddiq’s move toward blockchain-based gilts.
It raised concerns about the technical challenges of transitioning the long-existing traditional finance instruments to blockchain tech, including compatibility and legal considerations.
According to the Financial Times, those familiar with the discussions on the matter <a data-ct-non-breakable="null" href="https://www.ft.com/content/3f59cd4d-50fa-4bdb-bdcf-d9979f3502ee" rel="nofollow noopener" target="_blank" text="null" title="https://www.ft.com/content/3f59cd4d-50fa-4bdb-bdcf-d9979f3502ee">indicated</a> that the DMO’s primary focus is on minimizing costs and ensuring the efficient functioning of the gilt market.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uk-crypto-atm-operator-pleads-guilty-fraud-money-laundering-charges" rel="null" target="null" text="null" title="null">UK crypto ATM operator pleads guilty to fraud, money laundering charges</a>
<h2 id="labour-win-renews-push-for-crypto-in-the-uk">Labour win renews push for crypto in the UK</h2>
The UK general election ended in July with a landslide victory for the country’s Labour Party, ending the Conservative Party’s 14-year stint in government.
<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/labour-uk-elections-crypto-industry" rel="null" target="null" text="null" title="null">Renewed optimism for the cryptocurrency industry followed</a> the political change, with CryptoUK telling Cointelegraph at the time that “strong relationships” with Labour members of parliament and policymakers had been established.
The industry body highlighted the opportunity for growth under the new leadership, noting that the crypto sector could “significantly contribute” to Prime Minister Keir Starmer’s “key priorities” in job recognition, growth and inclusivity.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/advanced-ai-system-already-self-aware-asi-alliance-founder-agi/" rel="null" target="null" text="null" title="null">Advanced AI system is already ‘self-aware’ — ASI Alliance founder</a>

UK city minister pushes blockchain gilts despite gov’t concerns

Table of Contents

Cointelegraph

Other articles published on Oct 2, 2024

Binance Secures Regulatory Approval in Argentina, Offering Full Crypto Services to Local Users

BlockDAG’s Testnet Success Fuels Hype as Notcoin Faces Pressure and Celestia Powers Forward!

Hive’s AI Application Revenues Surpass Mining Income by 8 Times

Bitcoin’s Sudden Drop: Will It Sink Below $54K Amid Middle East Crisis?

Why Bitcoin Is Down Today: Investors Flee Amid Global Tensions

Aptos Ecosystem Receives Major Backing with New Fund from Top Venture Firms

Join our free newsletter for daily crypto updates!