Fintech executives warn that the absence of a pound-denominated stablecoin (GBP) could leave the United Kingdom at a disadvantage compared to the U.S. and the EU. This warning comes after regulatory progress in Washington and Brussels, affecting banks, payment gateways and crypto platforms exposed to payments and liquidity in local currency.
The global regulatory race for stablecoins has accelerated significantly. The European Union has MiCA, in force since June 2024, while the United States passed the so-called Stablecoin Innovation Act (GENIUS Act) in July 2025, which requires 100% audited reserves in cash or Treasury bonds and monthly disclosure obligations.
In contrast, the Bank of England has launched a consultation to regulate pound-denominated systemic stablecoins with more restrictive proposals. These include the possibility of setting limits of £20,000 per individual and £10,000,000 per company, allowing up to 60% of backing assets in short-term public debt. The timeline points to implementation toward the end of 2026.
Fintech sector leaders have pointed out concrete risks: the absence of a well-regulated GBP ecosystem could accelerate the adoption of dollar- or euro-denominated stablecoins by British firms and users, creating currency exposure and reducing the operational relevance of the pound in digital payments, according to statements by executives such as Mark Fairless (ClearBank) and Janine Hirt (Innovate Finance).
Implications for the financial market
The immediate effects for operators, treasuries and infrastructure providers can be summarized as changes in liquidity, basis risk and a shift of activity toward more permissive jurisdictions.
The time horizon points to the end of 2026, when the United Kingdom expects to complete its regime for systemic stablecoins. Until then, operators and treasury managers will need to assess whether to take on exposure to foreign stablecoins or wait for a potentially more restrictive domestic framework.
The regulatory decision will determine whether London acts as a competitive issuer of pound-denominated digital money or cedes ground to Washington and Brussels, with direct consequences for the relevance of the pound sterling in the global digital financial ecosystem.
