Industry leaders warn that the UK may lag behind other financial hubs unless it fosters the development of a British pound stablecoin. Without a robust GBP-pegged stablecoin, the UK’s financial services sector could lose out amid the shift toward on-chain, internet-native finance.
Mark Fairless, CEO of banking infrastructure firm ClearBank, argues that the UK urgently needs a stablecoin tied to the pound to maintain its competitiveness. As cross-border payments and internet-native finance evolve, a GBP-pegged stablecoin could significantly reduce friction, especially for international transactions, and help London remain a global financial hub.
Despite this need, the UK has been relatively slow to act. Regulators are still consulting on a stablecoin regulatory framework, and while the Bank of England aims to put rules in place “just as quickly as in the U.S.,” the delay creates uncertainty. The proposed limits on how much stablecoin individuals and firms can hold — £20,000 for individuals and £10 million for companies — have sparked pushback from industry players who fear the restrictions could stifle innovation.
Why a GBP stablecoin matters — and what’s holding the UK back
The lack of a strong, regulated GBP stablecoin could also weaken the UK’s geopolitical and fintech standing. Without a native, on-chain pound token, institutions may prefer dollar or euro-pegged stablecoins, which dominate global markets. Fairless warns that the UK risks being left behind by countries that are rapidly rolling out digital-asset policies.
Still, there are glimmers of progress: firms like BCP Technologies have launched a licensed GBP stablecoin (tGBP) under the supervision of the UK’s financial regulator. And the Bank of England has clarified that proposed holding limits may only be temporary, signaling potential flexibility as the market matures.
In summary: The UK’s cautious approach to stablecoin regulation poses a risk that it could fall behind in one of the most important financial innovations. For the UK to keep pace, it needs to encourage GBP-pegged stablecoins with robust regulation — otherwise, it may cede strategic ground in the global on-chain finance race.
