Former British finance minister George Osborne has warned that the UK risks becoming irrelevant in the global crypto race unless it urgently reforms its approach.
In an oped for the Financial Times, former UK chancellor accused the Labour government and the Bank of England of dragging their feet while international rivals surge ahead.
Osborne served as Chancellor from 2010 to 2016. He likened the current moment to the Big Bang financial reforms of the 1980s. That period marked a deregulatory wave led by then-Chancellor Nigel Lawson, which helped turn London into a global financial hub.
In his view, the crypto revolution demands similar boldness.
Osborne Targets Reeves and Bailey Over UK’s Sluggish Crypto Response
Now a member of the global advisory council of Coinbase, Osborne pointed to the US, the EU, Singapore, Hong Kong and Abu Dhabi as regions that are moving faster to establish legal frameworks for crypto and stablecoins.
He argued that Britain, by contrast, is being “completely left behind.”
He directly challenged Chancellor Rachel Reeves and Bank of England governor Andrew Bailey, saying that they have left Britain behind the pack.
While Reeves has pledged to make the UK “the best place in the world to innovate,” Osborne dismissed the government’s progress as vague and insufficient. “The chancellor says she’ll ‘drive forward’ on stablecoins, whatever that means,” he wrote.
BoE’s Tough Terms Leave UK Sidelined in Global Stablecoin Race
Meanwhile, Bailey spoke at the Mansion House dinner last month and reiterated the Bank’s cautious stance on digital assets. Historically, the Bank of England has insisted that systemically important pound-based stablecoins must be fully backed by central bank deposits that pay no interest.
As a result, critics argue this makes launching such stablecoins commercially unappealing.
As a result of that stance, the UK has almost no presence in the global stablecoin market. This market is dominated by US dollar-pegged tokens, which now account for 99% of the sector’s $250b value.
Although the Bank may allow returns on stablecoin reserves, Bailey stays cautious. He warns of volatility and risks to the monetary system.
Crypto Innovation Demands Political Will, Osborne Warns as Patience Wears Thin
In contrast, Osborne pointed to how US politicians, including Donald Trump, have embraced crypto in policy platforms, adding urgency to the UK’s need to act.
He urged Reeves to follow the US Congress in setting clear rules in law, rather than deflecting blame onto regulators.
“We became the world’s financial centre because we weren’t afraid of change,” he wrote. “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 has long backed fintech innovation. In 2014, he launched a Treasury review into digital currencies in an effort to keep the UK at the forefront of financial technology.
His recent remarks echo that same vision but show a mounting frustration with what he sees as political and institutional hesitation.
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