Poundtoken and BitcoinPoint will make the country's first 100% backed GBP stablecoin

Rebeca Moen  Feb 01, 2023 17:28  UTC 09:28

3 Min Read

Because to a cooperation between Poundtoken and BitcoinPoint, the first 100% backed GBP stablecoin in the nation, denoted by the symbol $GBPT, will be available to retail customers via a network of 18,000 ATMs spread out throughout the United Kingdom. The action is in line with the government's aim to utilise stablecoins for wholesale settlements and is another step toward the United Kingdom becoming a "crypto center."

Bitcoin Point is a Bitcoin (BTC) and cryptocurrency exchange that is regulated and registered in the United Kingdom. Bitcoin Point supports the Lightning Network. The only company authorised to distribute the GBPT ($GBPT) stablecoin is Poundtoken. Poundtoken asserts that their stablecoin, GBPT, is completely backed in pound sterling at all times, and that auditor KPMG provides monthly attestations to support this claim.

Tokens like as Bitcoin and Ether (also known as ETH) may already be exchanged for fiat currency through automated teller machines (ATMs) located all across the United Kingdom. The inclusion of GBPT on the BitcoinPoint platform, on the other hand, means that users may now make retail and wholesale payments using the GBP stablecoin, and utilise a currency that is already known to Brits as an entry point into the cryptocurrency market.

The economy of the United Kingdom is the second biggest in all of Europe. Its government is currently recruiting for senior roles in Central Bank Digital Currencies (CBDCs), in addition to a rollout of a digital pound, and Prime Minister Rish Sunak has been vocal in his support for Digital Settlement Assets, the new and preferred terminology for cryptocurrency.

"Bringing blockchain technology and cryptocurrencies to the United Kingdom and easing their integration into the country's economy are two of GBPT's primary goals.". It is high time that the United Kingdom began to live up to its potential as a global leader in cryptography.

The alliance is working to standardise the usage of stablecoins in the day-to-day operations of financial institutions and businesses. Marzouk provided an explanation, "At Bitcoin Point, we are Bitcoin enthusiasts, and we think there is a lot of potential value in stablecoin projects–it just makes perfect sense.

Stablecoin adoption has grown over the globe, from inflation-ridden Argentina to European financial centre Switzerland. However, the wounds of the Terra (LUNA) algorithmic stablecoin catastrophe are still raw for the crypto sector, causing some jurisdictions, like as Hong Kong, to restrict usage outright.

Scoring methods from established finance risk assessors such as Moody’s may offer legitimacy to the emerging stablecoin ecosystem while initiatives by Bitcoin-advocate organisations such as the Bitcoin Policy Institute may pave the road towards a crypto and stablecoin-based future.

“We envisage Bitcoiners opting out from the banking system and becoming bitcoin exclusively; you might also have folks who don't want to have a bank account and may thus use GBPT. So when they need cash they may offramp into GBPT to acquire cash.”

The change could make it possible for an increasing number of crypto fans to join without the assistance of a bank. The connection is currently active across all 18,000 automated teller machines in the United Kingdom.

Read More