The UK has launched a task force to examine the risks and benefits of cryptocurrency. The task is part of a broader financial technology strategy set by the British government.
The Treasury Department announced on Thursday that the task force was aimed at the Bank of England (BoE) and the Financial Conduct Authority.
The task force is part of a wider fintech, or financial technology, a strategy laid out by Westminster. As part of its initiative, Britain will sign an agreement dubbed the "fintech bridge" with Australia on Thursday (22/3) which will allow British fintech companies to sell products and services in Australia. The agreement will also build cooperation on policies and regulations around the sector.
"I am committed to making this sector grow and flourish, and our ambitious sector strategy sets out how we will ensure that Britain stays on the cutting edge of the digital revolution," Finance Minister Philip Hammond said in a statement.
"As part of that, this new task force will help UK manage the risks surrounding cryptocurrency assets, as well as leverage the potential benefits of underlying technology."
British and Australian fintech industry agencies - Innovate Finance and Fintech Australia - will be involved in regular meetings aimed at advising governments of both countries, the Ministry of Finance said.
Charlotte Croswell, chief executive of Innovate Finance, said the so-called 'fintech bridge' offers "good opportunities" for both countries to share industry knowledge.
The US government's strategy also aims to create broad financial industry standards making it easier for fintech companies to partner with banks, he said. Hammond is scheduled to speak on strategy at a conference organized by the Treasury in London on Thursday (22/3).
Cryptocurrency is a controversial issue for governments because of its decentralized nature and price volatility. The most famous cryptocurrency in the world is bitcoin, as it had surged to a record high near $ 20,000 last year.
Bank of England Governor Mark Carney called for more regulation in this sector in March, and labeled price fluctuations in the "speculative mania" space. The central bank chief said last month that bitcoin had "pretty much failed" to become a currency.
In addition, Chief Executive of Financial Conduct Authority Andrew Bailey has previously warned bitcoin buyers to "get ready to lose all your money."