A partnership between Poundtoken and BitcoinPoint will make the country’s first 100%-backed GBP ($GBPT) stablecoin accessible to retail consumers via a network of 18,000 ATMs across the UK. The move marks a further step for the UK to become a “crypto hub” and is in line with the government’s push to use stablecoins for wholesale settlements.
Bitcoin Point is a UK licensed and registered Lightning Network enabled Bitcoin (BTC) and cryptocurrency exchange. Poundtoken is the sole issuer of the GBPT ($GBPT) stablecoin. Poundtoken claims that its GBPT stablecoin is fully backed in British Pounds at all times, with monthly certifications provided by auditor KPMG.
The tokens include Bitcoin, Ether (ETH) and are already redeemable for cash at ATMs across the UK. However, the inclusion of GBPT on the BitcoinPoint platform means that users can now access retail and wholesale payments using the GBP stablecoin, and use a currency familiar to Brits as an on-ramp to cryptocurrency.
Benoit Marzouk, CEO of BitcoinPoint, told Cointelegraph that the move could democratize “access to cryptocurrency for non-tech people in the UK.” He explained that:
“It is also fully in line with the government’s consideration of integrating stablecoins with the UK economy.”
The United Kingdom is the second largest economy in Europe. SThe government is hiring senior officials for central bank digital currencies (CBDCs) as well as the launch of digital sterling, while Prime Minister Rish Sunak has signaled his support for digital settlement assets, the new terminology preferred for cryptocurrencies.
Crobie explained to Cointelegraph that Poundtoken arose as a result of the “rise of USD stablecoins” such as Tether (USDT) and Circle (USDC), while there is no UK-based alternative.
“The purpose of the GBPT is really to bring blockchain and the crypto sector to the UK and facilitate its adoption in the UK. […] It is time for the UK to start realizing its potential as a global leader in the sector.”
The association works to normalize the use of stablecoins for everyday financial practices. Marzouk explained: “We are Bitcoiners at Bitcoin Point and we really see value in stablecoin projects, it really makes sense.”
The use of stablecoins has proliferated around the world, from Argentina, ravaged by inflation, to Switzerland, a European financial center. Nevertheless, The scars from the fall of the algorithmic stablecoin Terra (LUNA) are still fresh in the cryptocurrency sector, forcing some jurisdictions, such as Hong Kong, to ban its use entirely.
The scoring systems of traditional financial risk assessors such as Moody’s may lend credibility to the burgeoning stablecoin ecosystem, while the efforts of Bitcoin advocacy groups such as the Bitcoin Policy Institute may pave the way toward a future based on cryptocurrencies and stablecoins.
In the United Kingdom, Marzouk told Cointelegraph that ATM cashouts using Bitcoin Point remain low, less than 5%, and there is unlikely to be a dramatic increase in the number of users taking advantage of GBPT to hold physical cash. . However, he is “quite confident on the access ramp [a las criptomonedas]”.
“We see bitcoiners opt out of the banking system and convert to bitcoin only; there could also be people who don’t want to have a bank account and therefore could use GBPT. So when they need cash, they can switch to GBPT to get cash.”
The move could allow more and more cryptocurrency enthusiasts to participate without a bank. The integration is already active at all 18,000 UK ATMs.
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