Digital Currency Markets & UK Competitiveness
The adoption of new technologies is transforming payments, investments, and economic systems, creating new opportunities but also raising concerns around regulation, privacy, and systemic risks. Industry leaders, including fintech firms, banks, and technology providers, will have a critical role to support policymakers to develop a robust regulatory framework that balances innovation with stability. The inquiry topic will involve academia, industry experts, regulatory bodies to collect evidence in the context of the UK. The focus will be on the financial stability, innovation and competitiveness and addressing the public concerns.
Financial Stability
For the United Kingdom, the emergence of these markets offers both opportunities and challenges that will influence its economy, financial infrastructure, and global competitiveness. The shift to digital currencies could disrupt existing financial institutions and create transitional challenges for businesses and consumers. Clear policies and phased implementation will be essential.
Innovation and Competitiveness
While digital money and markets bring exciting opportunities, they also introduce significant risks. Without proper regulation, these risks could undermine financial stability and consumer protection. New digital money and markets hold transformative potential for the UK. By fostering innovation, these technologies can enhance the country’s competitiveness and drive economic growth. However, to ensure sustainable progress, they must operate under robust regulatory and policy frameworks that balance innovation with oversight.