Thirty crypto industry leaders have written the UK Chancellor of the Exchequer, Rachel Reeves, urging the government to press ahead with the development of a national stablecoin strategy and the accompanying enabling regulations.
The signatories, who include representatives from BitGo, Coinbase, Copper Kraken and Ubyx, warned Reeves that, “The global regulatory tide is turning. As the other jurisdictions move decisively, the UK must act now to avoid being a rule-taker rather than a rule-maker in the digital asset era.”
"The UK can position itself as the premier global hub for stablecoin innovation"
“With leadership and foresight”, the letter continued, “the UK can position itself as the premier global hub for stablecoin innovation – reaffirming its role at the heart of international finance for decades to come.”
George Osborne, a predecessor of Reeves in the top UK government finance role, made a similar point earlier in August, when he issued a warning that the UK government is risking its opportunity to take lead in the crypto world. Osborne is an advisor to Coinbase, a crypto exchange.
Stablecoin benefits
In addition to the threat of being left behind, the letter also highlights the benefits of adopting a more aggressive stablecoin approach, including generation of fees and FX revenue streams, and new demand for gilts through digital channels at a time when the UK’s share of FX reserves and global transactions has been under pressure,” according to the letter.
“The choice is whether Britain positions itself as a central hub capturing the associated economic benefits or accept a marginal role,” the corporate leaders wrote.
Cautious approach
The UK treasury department currently has a more cautious approach to stablecoins, taking its time to build an understanding, encouraging sandbox testing environments and seemingly taking a risk-averse line on regulation, through its Plan for Change.
Discussing the Plan in April, Reeves emphasized the importance of consumer protection:
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers,” she said. “Robust rules around crypto will boost investor confidence, support the growth of fintech and protect people across the UK.”
