By
Chimamanda U. Martha
April 19th, 2024
The UK FDC will focus on the potential for a Central Bank Digital Currency (CBDC), as well as the regulatory approach to stablecoins and other valuable crypto assets.
Five associations – including the City of London Corporation, the Digital Pound Foundation, the Payments Association, TheCityUK, and the UK Finance – have come together to form an alliance dubbed the UK Digital Forum for Digital Currencies (UK FDC). According to the announcement, the UK FDC is a forum for discussion and collaboration around the industry’s response to digital currency developments in the UK.
Notably, the UK FDC will focus on the potential for a Central Bank Digital Currency (CBDC), as well as the regulatory approach to stablecoins and other valuable crypto assets. While each association in the UK FDC has a respective role to play, they will all retain their independence to continue with their prior objectives as a single entity.
“….the group will seek to enable a safe and secure environment for innovators to grow and attract international investment into the UK, while also helping to create a constructive bridge between the associations representing both incumbents and the emerging players in the sector. The group will aim to mitigate the actual risks and alleviate the perceived risks through education and the ability to advocate for appropriate policy and proportionate regulation,” the announcement noted.
Meanwhile, the association has tasked each of the five members to work on educational programs that help grow digital assets in a risk-free environment.
UK FDC on the Future of Web3 Industry
The United Kingdom has been a hub for Web3 projects in the European market due to its financial success. Additionally, the country has clear regulatory policies that help Web3 developers build projects that scale to the global market. Moreover, the success of the Web3 industry is measured by how well the project can be used in any part of the world seamlessly.
The development of Web3 is heavily reliant on the success of CBDCs, thus the top priority for the UK FDC. Moreover, the presence of the Digital Pound Foundation in the association speaks volumes about the set mission.
We are incredibly proud to be one of the five associations to have come together to form the UK Forum for Digital Currencies (UK FDC), alongside the City of London Corporation, The Payments Association, TheCityUK and UK Finance 👉 https://t.co/3Ly3g9aIfb
…#UK #DigitalPound pic.twitter.com/NVHVyVul36— Digital Pound Foundation (@digitalpoundfdn) January 11, 2023
The digital asset industry showed tremendous potential to revolutionize the global economy by eliminating the need for third-party trustees. Moreover, digital assets process cross-border payments faster and cheaper than traditional platforms that used more than three days to settle a single transaction.
Nonetheless, the Terra Luna, FTX, and Alameda implosions have slowed down cryptocurrency adoption, particularly in the mainstream market. Furthermore, retail traders can access desired digital assets using non-custodial platforms with minimal interference from government agencies.