The Treasury has announced that it will regulate some cryptocurrencies as part of a wider plan to make the UK a hub for digital payment companies.

So-called “stablecoins” will become recognised forms of payment to give people confidence in using digital currencies, it said.

Stablecoins are designed to have a stable value linked to traditional currencies or assets like gold.

They are considered less volatile than cryptocurrencies such as Bitcoin.

The Treasury also said it planned to consult on regulating a much wider range of digital currencies later this year, without saying which they might be.

Chancellor Rishi Sunak said: “We want to see the [cryptocurrency] businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term.”

The Treasury has not yet confirmed which stable coins will be regulated; well-known ones include Tether and Binance USD.

Stable coins are currently used in the United States to facilitate trading, lending or borrowing of other digital assets.

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