The UK’s Labour Party has vowed to transform the nation into a global FinTech leader, ahead of 2024’s UK general election.
The Party hasn’t found itself inside 10 Downing Street since David Cameron’s election win kicked out Gordon Brown back in 2010, but now Labour is pledging to revolutionise the UK’s financial landscape with its ambitious sector plans, according to Finextra.
In the polls, the Party has amassed a large lead, with the odds tipping Sir Keir Starmer to become the UK’s next Prime Minister.
If this comes to fruition, the Party is aiming to turn the UK into the standard-bearer for the use of AI. On top of this, Labour is expected to back the Bank of England’s CBDC work and embrace a digital pound.
The Party’s plan says, “A future Labour government will therefore look to make the UK a global leader in tokenisation by advancing work to clarify the law around tokenisation, and working with regulators to establish a proportionate, outcomes-based regulatory regime to oversee the technology.”
Labour has also acknowledged the looming risk of the UK lagging in financial innovation and has proposed this comprehensive strategy to rectify the matter.
The party is throwing its support behind the initiatives spearheaded by the Joint Regulatory Oversight Committee, focusing on shaping the upcoming phase of Open Banking.
This involvement extends to the meticulous definition of the long-term regulatory framework. EmphasiSing the transformative capacities of Open Finance, the party commits to formulating a strategic roadmap.
This roadmap is envisaged not only as a driver for advancing financial services but also as a catalyst for fostering financial inclusion while fortifying household savings and investments.
In a proactive stance towards promoting innovation and inclusivity, a prospective Labour government intends to collaborate with the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR).
Together, their objective will be to assess the feasibility of establishing a new regulatory sandbox. This envisioned sandbox aims to nurture the development of pioneering financial products explicitly tailored to meet the needs of excluded and underserved populations throughout Britain.
The Labour party perceives this initiative as a crucial stride towards ensuring that the benefits of financial progress are accessible to diverse segments of society.
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