UK Falling Behind on Stablecoins, Crypto Adoption

The United Kingdom is falling behind in the digital asset market, particularly in the area of stablecoins, despite the technology’s potential to help the country preserve its leading role in global financial services.

That was a central message in a recent Financial Times op-ed by George Osborne, the former UK chancellor turned crypto lobbyist, who joined Coinbase as an adviser last year.

“What I see makes me anxious. Far from being an early adopter, we have allowed ourselves to be left behind,” Osborne wrote, referring to his native UK. 

A key concern for Osborne is the sluggish progress on stablecoins — onchain representations of fiat currencies that are helping to reduce friction in transactions and cross-border remittances.

London’s position as a global financial hub, he argued, stemmed from its willingness to embrace innovation — an attitude that it has all but abandoned. 

“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. 

While the United States advances legislation like the GENIUS Act to reinforce the dollar’s role as the dominant global reserve currency, Osborne warned that the UK government’s inaction “ensures the pound won’t even play a supporting role,” highlighting the greenback’s overwhelming lead in the stablecoin market.

That’s a significant setback, given that the pound sterling ranks among the top five most traded currencies globally, according to the Bank for International Settlements.

Osborne’s op-ed amounted to a scathing critique of current Chancellor Rachel Reeves, who, he noted, has failed to follow through on her promise to take bold steps on stablecoins.

Related: Boom in RWA tokenization expected after passing of GENIUS Act — Aptos exec

Coinbase’s satirical ad sparks controversy

Osborne’s op-ed followed the release of a provocative musical ad by Coinbase, the company he advises, which criticized the UK for its economic mismanagement and ongoing cost-of-living crisis.

Titled “Everything Is Fine,” the ad satirizes the bleak state of the country, perhaps as a way to highlight crypto’s potential as a wealth-generating alternative.

“If everything is fine, then don’t change anything at all. But when the financial…