George Osborne, the UK’s former Finance Minister who now advises crypto giant Coinbase, stated that the UK is falling behind other countries when it comes to regulating cryptocurrencies, especially “stablecoins.”
In an op-ed for the Financial Times, Osborne claimed this delay could cause the UK to miss out on a major financial revolution, just like the one in the 1980s known as the “Big Bang”. According to him, Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey are not moving fast enough.
Osborne said the UK rose to global financial leadership by embracing risk. He also warned that now it’s falling behind as others like the US, EU, Singapore, and Abu Dhabi push forward.
Call for Clear Rules
Osborne stated that Reeves should follow the U.S. Congress and create proper laws for stablecoins. He claimed that blaming regulators for delays is just an excuse. The U.S. has recently passed a law called the Genius Act supporting the use of stablecoins, while the EU has also introduced its own rules.
The UK government has said that it is working on crypto regulation and plans to create clear, strong rules to protect investors and support innovation. It also pointed out that the UK is still Europe’s top fintech hub and cooperating with the U.S. on tech-related policies.
Bank of England Still Cautious
In 2023, the Bank had said any stablecoin used widely in the UK should be 100% backed by central bank deposits that earn no interest, a move that made UK-based stablecoins less appealing.
But now, the Bank of England is rethinking that approach. It may allow these stablecoins to earn some return, and a public consultation is expected later this year.
Andrew Bailey, the Bank of England governor, is more careful. He recently said stablecoins need to be safe and reliable. If they’re not, they could disrupt the UK’s financial system. He doesn’t support allowing regular banks to issue stablecoins but prefers something called “tokenized deposits,” a safer digital version of money already held in banks.
U.K. Lags Behind Others
Despite early proposals from the UK’s Treasury and Financial Conduct Authority, the country still doesn’t have a full legal framework for stablecoins. Meanwhile, U.S. dollar-based stablecoins dominate 99% of the global $250 billion market.
While Osborne pushes for action, Reeves’ team insists there is no conflict with the Bank of England and that efforts are ongoing.
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