JAKARTA - The partnership between Poundtoken and BitcoinPoint will make the UK pound stablecoin, GBPT, the country's first 100% supported, accessible to retail consumers through a network of 18,000 ATMs across the UK. The move marks another step towards Great Britain becoming a "crypto center" and is in line with the government's efforts to use stablecoins for wholesale trading.
BitcoinPoint is a Bitcoin exchange and cryptocurrency that supports the Lightning Network, licensed and registered in the United Kingdom. Poundtoken is the only GBPT issuer, which is declared fully supported in pounds at all times, with monthly endorsements provided by KPMG auditors.
Cryptocurrencies including Bitcoin and Ether can already be exchanged for cash at ATMs across the UK. However, registering the GBPT on BitcoinPoint means that users can now access retail and wholesale payments using stablecoin pounds and using familiar currencies for Britons as a way to crypto.
Benoit Marzouk, CEO of BitcoinPoint, told Cointelegraph that the move could democratize access to crypto for people who don't understand technology in the United Kingdom.
"This is also fully in line with the government's consideration of integrating stablecoins with the UK economy," said Marzouk.
The UK is Europe's second-largest economy. His government is recruiting for senior roles in central bank digital currencies as well as digital pound launches, while Prime Minister, Rish Sunak, is very vocal in supporting a digital settlement asset,'' a new terminology the UK government likes for crypto.
Crosbie explained to Cointelegraph that Poundtoken emerged as a result of rising USD stablecoins such as Tether USDT and USD Coin and the fact that there is no UK-based alternative.
GBPT's goal is really to bring blockchain and crypto to the UK and make it easier to adopt in the UK. It's time for the UK to start realizing its potential as a world leader in crypto, Crosbie said.
This partnership works to normalize the use of stablecoins to carry out daily financial practices. "We are Bitcoiners at BitcoinPoint, and we really see value in stablecoin projects, this makes a lot of sense," said Marzouk.
The use of stablecoins has mushroomed around the world, from inflation-hit Argentina to European financial centers like Switzerland. However, the wound from Terra's algorithmic stablecoin crash is still fresh for the crypto industry that forces several jurisdictions, such as Hong Kong, to ban its full use.
The assessment system of traditional financial risk assessors like Moody's can give credibility to the growing stablecoin ecosystem, while efforts from Bitcoin support groups such as the Bitcoin Policy Institute can pave the way for a crypto and stablecoin-based future.
Marzouk told Cointelegraph that in the UK, the disbursement via ATM off-ramp using BitcoinPoint remains low, even less than 5%, and it is unlikely that there will be a dramatic increase in the number of users using GBPT to hold physical cash. However, he is pretty confident about the on-ramp.
We see Bitcoiners opting out of the banking system and just being Bitcoin. You can also have people who don't want to have bank accounts and therefore can use GBPT. So, when they need cash, they can switch to GBPT to get cash, "said Marzouk.
This move allows more and more crypto enthusiasts to participate without banks. Integration is now active at 18,000 UK ATMs.
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