Tether announced today that it would start a sterling-backed stablecoin next month. This announcement comes after the UK decided to regulate the stablecoin sector in readiness for its attempt to turn London into a world crypto hub. This new stablecoin by Tether will be launched in early July and named GBPT. The stablecoin will be pegged at 1:1 to the pound sterling. The GBPT will also provide traders with a cheaper and faster way of transacting.
The GBPT stablecoin will be the fourth stablecoin supported by Tether after the euro-pegged EURT, the Chinese yuan-pegged CNHT, and the Mexican peso-pegged MXNT. Despite the current crypto market downturn and massive sell-offs, major world governments have taken more interest in the stablecoins. They are looking to utilize the potential presented by stablecoins maximally. Although the GBPT stablecoin is not yet in circulation, the UK government has announced that once the stablecoin has been brought under regulations, it will be validated and recognized as a form of payment.
In a similar development showing the acceptance of cryptocurrency by the government and promoting a forward approach to crypto, the UK announced that the Royal Mint would work on creating a special NFT. Paulo Ardoino, the CTO of Tether, explained that the UK is an extremely important link in the acceptance of cryptocurrency and stablecoins globally. He continued that he is looking forward to working with regulators and other relevant stakeholders to achieve this goal.
Ardoino said, “We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer.” He concluded, “Tether is ready and willing to work with the UK regulators to make this goal a reality and looks forward to the adoption of Tether stablecoins.”
Featured Image: DepositPhotos © artefacti
Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.