The Bank of England expects cryptocurrency regulation within a year

The Bank for International Settlements and the Bank of England recently concluded a pilot process for a central bank digital currency (CBDC) that could refocus lawmakers on finalizing cryptocurrency regulations in the UK.

The pilot project, Project Meridian, coordinated messaging between the Bank of England’s real-time gross settlement system and the cadastre for home purchases using central bank funds.

The Bank of England needs new laws to consider CBDC stablecoin settlements

The transfer includes only commercial banks and legal entities representing the buyer and seller.

Interbank Settlement Synchronization Model | source: Bank for International Settlements

Synchronization operator linked RTGS and Cadastre, ensuring money changed hands only if real estate had changed hands. Use APIs compliant with global financial messaging standards. APIs define the interaction between two separate software systems.

The Bank of England could adapt the APIs to relay these messages to other asset classes before launching the RTGS system next year.

Earlier this month, UK Deputy Governor for Financial Stability Sir John Cunliffe suggested that a new interbank settlement system could pair RTGS with a distributed ledger.

Alternatively, the Bank of England could wait to pass the financial services markets bill. New laws define the rules for stablecoin settlements.

Cunliffe argued that while stablecoins offer payment efficiency, they need rules before banks can use them to settle interbank transactions.

UK lawmakers could finish the bill within a year, says the Treasury official

Although there is no set time frame for the law’s passage, lawmakers can speed up the process to respond quickly to unexpected events. Finance Minister Andrew Griffiths recently Tell CNBC reports that the government plans to finalize crypto regulations over the next year.

The Federated States of Micronesia bill related to cryptocurrency completed its committee stage in the House of Lords on March 23. The bill is currently in its report stage, where members can propose other amendments that were not covered in the committee stage.

The bill is reprinted with all agreed changes before moving to a third reading, which is the last chance for amendments.

The final stages of passage include consideration of amendments and royal approval. If both the House of Commons and the House of Lords quickly approve the final revisions, the King can turn the bill into law.

After that, players in the cryptocurrency industry will likely have a window to comply with the new law. Coinbase said cryptocurrency regulation in the United States could lead to a shift in focus from the United States to the United Kingdom

For a recent Be (In) Crypto Bitcoin (BTC) analysis, click here.


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