UK Crypto Firms Urge Government to Embrace Stablecoins
Major crypto firms are calling on the UK government to develop a national strategy for stablecoins to avoid falling behind the US in this rapidly evolving technology. They believe a proactive approach is crucial for the UK to remain a leader in the financial sector.
- Call to Action: 30 crypto industry figures sent an open letter to the UK Finance Minister, urging the government to create a national strategy for stablecoins.
- Why it Matters: The industry fears the UK is becoming a “rule-taker” rather than a “rule-maker” in the digital asset space.
- What are Stablecoins? Stablecoins are cryptocurrencies pegged to existing currencies, like the US dollar. The total market is worth over $280 billion.
- UK’s Current Position: The UK’s approach is seen as a disadvantage, with the legal definition focusing on the “form rather than function” of stablecoins.
- Benefits of a Strategy: A national strategy could strengthen the UK’s financial center, generate revenue, and support demand for gilts.
- Industry Support: The letter was signed by executives from major crypto companies like Coinbase and Kraken.
- Potential Risks: The article acknowledges the risks, citing the 2022 collapse of Terra and Luna.
- Expert Opinion: HSBC suggests stablecoins could bridge the gap between traditional finance and digital assets, but regulatory issues are a key hurdle.
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Source: https://www.cnbc.com/2025/08/20/crypto-uk-stablecoin-strategy.html