Five UK associations have joined forces to establish the UK Forum for Digital Currencies, a new alliance aimed at creating better policies and regulation for digital currencies.

Members include the City of London Corporation, the Digital Pound Foundation, The Payments Association, TheCityUK, and UK Finance.

The new alliance said that while there are risks associated with digital assets, it recognises its growing interest and the adoption of new forms of digital money around the world.

The move comes shortly after the government announced plans to explore the launch of a digital pound.

According to a report by the BBC, the economic secretary to the Treasury said that the government plans to launch a new public consultation on a national cryptocurrency over the next few weeks.

Andrew Griffith MP told the Treasury Select Committee that the UK is committed to become a worldwide “crypto hub”.

The UK Forum for Digital Currencies says that digital currencies will “open many opportunities or the UK” and enable it to remain competitive in FinTech.

“By combining the expertise and extended network of the five associations, the group will seek to enable a safe and secure environment for innovators to grow and attract international investment into the UK, while also helping to create a constructive bridge between the associations representing both incumbents and the emerging players in the sector,” said UK Finance.

The group aims to mitigate risks and “alleviate perceived risks” through both education and advocacy for appropriate policy and “proportionate” regulation.

It also said it will lead on facilitating discussion and engagement between the UK’s financial services industry and cryptocurrency sector to “reduce barriers”.

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