A former UK Chancellor of the Exchequer, George Osborne, has warned the current government that the country risks missing an opportunity to take lead in the crypto world.
Writing in the Financial Times, Osborne said all his successors as the chief finance minister, from both sides of the political spectrum, had failed to capitalize on the lead he set when he first started talking about Bitcoin in 2014. Among other roles, he is now on the global advisory council of Coinbase, the US-based crypto exchange.
Too much caution
He drew a comparison between the US and the UK approach, criticizing both the UK government and the Bank of England for their caution. He said they are focusing too much on consumer and investor protection, making it too difficult for people to buy cryptocurrencies, and in particular for retail investors to use exchange-traded funds (ETFs).
“On crypto and stablecoins, as on too many other things, the hard truth is this: we’re being completely left behind. It’s time to catch up,” Osborne wrote.
Lack of regulation
He cited the US GENIUS Act and the EU’s MiCA as examples of regulatory action, making the point that the UK is missing an important opportunity to lead the market.
The Treasury has said it is developing “robust rules around crypto” and that it is working on a technology programme with the US as part of the US-UK trade deal.
Osborne may have a point about the cautious approach. Speaking at a dinner in the City of London in July, Andrew Bailey, the Governor of the Bank of England, said, “There may well be a role for stablecoins going forward, but I don’t see them as a substitute for commercial bank money.” The Bank is planning to publish a Consultation Paper on the UK’s systemic stablecoin regime, following its 2023 Discussion Paper.
Post politics success
Osborne was the Conservative party Chancellor of the Exchequer from 2010 to 2016. He was fired by Theresa May when she became Prime Minister after the Brexit referendum.
Since then, he has held a number of roles, including editor of the London Evening Standard, advisor to the world's largest asset manager BlackRock and partner at consultancy firm Robey Warshaw. New York-based Evercore has recently agreed to buy Robey Warshaw, reportedly paying the equivalent of almost $40 million on average to each of the five partners.
