Crypto Asset Technology

Debate between Baroness Penn and Lord Davidson of Glen Clova

Thursday 21st July 2022 Lords Chamber

[Lord Davidson of Glen Clova]

To ask Her Majesty’s Government what progress they have made towards their ambition to make the United Kingdom a global cryptoasset technology hub.

[Baroness Penn (Con)]

The Government’s clear message to crypto asset firms is that the UK is open for business. The Government have announced a range of reforms to position the UK as a crypto asset technology hub, including legislating to bring stablecoins into payments regulation, committing to consult on regulation on a broader set of crypto asset activities later this year and exploring ways to enhance the competitiveness of the UK tax system to further encourage the development of the crypto asset market.

[Lord Davidson of Glen Clova (Lab)]

I thank the noble Baroness for her Answer. Cryptocurrencies are characterised by opacity, volatility, lack of intrinsic value and bare regulation. In recent days, even stablecoins have exhibited a lack of stability. The Government seem to be content for cryptocurrency to form part of the UK’s financial architecture. My question is: if the Government see a virtue in cryptocurrencies that transcends the way in which a fiat currency or a central bank digital currency operates, what exactly is it? Would the Minister kindly explain why cryptocurrencies operate as a better means of exchange?