Former Chancellor George Osborne has voiced concerns about the UK’s diminishing status in the cryptocurrency landscape, warning that the nation risks missing out on a significant new wave of digital currency demand. He pointed out that the UK fell behind during the first wave of cryptocurrency adoption, a period during which the US, once sceptical under President Donald Trump, began to embrace digital currencies. In an opinion piece for the Financial Times, Osborne expressed anxiety that the UK, instead of being a pioneer, has allowed itself to be sidelined in this evolving market.
Osborne highlighted that the UK is now on the brink of missing the upcoming surge in stablecoins—digital currencies designed to maintain a steady value by being pegged to real-world currencies, such as the dollar. He noted that while the US has made strides, including regulatory developments under the US Genius Act for stablecoins, the UK’s current approach appears hesitant and reactive. The recent collapse of the prominent stablecoin TerraUSD in 2022 has further complicated the landscape, yet Osborne argues that this should not deter the UK’s involvement in forming a framework.
He contrasted the UK’s lack of progress with the proactive measures taken by financial hubs like Singapore, Hong Kong, and Abu Dhabi, which have instituted comprehensive regulations for crypto assets. Osborne underlined that while stablecoins were initially intended to disrupt the dominance of the dollar, they have instead reinforced it. The disparity extends to investment opportunities, as US citizens can access cryptocurrency exchange-traded funds, whereas UK retail investors lack similar options.
Osborne criticized the current government and Chancellor Rachel Reeves for their lack of decisiveness on stablecoins, despite recent promises to accelerate progress in this area. The Bank of England has also shown scepticism; its governor, Andrew Bailey, has suggested developing standards to assess whether stablecoins can serve as true equivalents of money.
Osborne argued that this indecision could lead to the UK’s irrelevance in the cryptocurrency sphere, urging for urgent action to catch up with global trends. He emphasised the importance of establishing a strong regulatory landscape if the UK wishes to maintain a role in the future of digital currencies. Other advocates from the Conservative-led coalition government era, such as former Chancellor Philip Hammond, have taken active roles in the crypto industry, signalling a push for continued engagement and innovation in this rapidly evolving sector. The UK Treasury has yet to respond to these assertions.