Stratis are busy working on the Great British Pound Token (GBPT) and are pleased that the general backdrop would appear to be favourable to the need for such a product.
It was particularly interesting to listen to Sir Jon Cunliffe’s, the Deputy Governor of the Bank of England for Financial stability, speech on 13th May 2021 https://youtu.be/rsowfkOUHqM.
Interestingly Cunliffe said: “The demand for CBDC/stable coins is unknown but Bank of England does not have a responsibility to preserve the current status quo BUT to ensure financial stability going forward. Post-BREXIT, there is a huge opportunity to reduce wholesale and retail cross broader payments”. Aka digital currencies.
HM Treasury and the Bank of England have established a Taskforce to examine a UK CBDC. https://www.gov.uk/government/publications/terms-of-central-bank-digital-currency-taskforce-terms-of-reference.
We have recently seen many of the major payment platforms, such as Visa, agreeing to start accepting stable coins onto their platforms. We believe that this will only pave the way for greater adoption of digital currencies. The need for a sterling backed digital currency such as GBPT is likely to grow as we start to see greater issuance of digitally issued equities and debt instruments. These digital securities will need to pay dividends and coupons (income) using digital currencies as opposed to using the traditional banking services as it will prove to be faster and cheaper to do so.
One of the key objectives of financial regulators in the UK and other jurisdictions is to ensure that customers are treated fairly. Currently, shareholders and bondholders are paid any income due to them on set dates, and it is payable to whoever is the holder on the ‘record date’, even though they may have only brought the share or bond on that day. It is possible for digital equities and bonds to make income payments based on the number of days or even hours that a bond or equity has been held and then pay this income monthly or weekly. Therefore, regulators may start asking companies to make income payments based on how long the holder has held the share or bond, i.e. treating their customers fairly. Indeed we already have FTX and Bittrex offering a range of US quoted companies in a “digital wrapper”. Once we see the UK quoted equities that pay a dividend being made available as digital securities, there will be a need for a digital sterling backed stable coin. i.e. GBPT.
Stratis has already undergone third-party due-diligence scrutiny and has successfully passed. Stratis is now working with one of the top 4 accountants in the world and one of Europe’s leading firm of lawyers to launch GBPT as soon as the UK regulators allow. The successful launch of the GBPT stable coin, deployed on the decentralized InterFlux Hub, will further cement the Stratis Platform as a dependable blockchain solution provider. These developments have already resulted in some other exciting business opportunities, which will expectedly lead to further utilization of Stratis Blockchain Technologies.