The Centre for Financial Technology and the Centre for Cryptocurrency research are pleased to release “Mind the Gap: How Stablecoins can Secure the UK’s Financial Future.

Stablecoins already represent a market of more than $280 billion, dominated by US dollar-backed tokens. Their rapid adoption by consumers and financial institutions is transforming global payments and financial infrastructure. Stablecoins enable lower transaction costs and faster settlements and promote financial inclusion by supporting remittances and expanding access to financial services for the world’s unbanked population.  

The growth of this sector is helping traditional financial institutions bridge the gap with the digital asset ecosystem and reduce reliance on legacy IT systems.  With major institutions from banks such as JPMorgan to Visa building their future business models around stablecoins, the report warns that regulatory hesitance and the lack of a sterling stablecoin is forcing UK businesses to rely on US dollar and euro alternatives, exposing them to foreign exchange risks and embedding “digital dollarisation” in international commerce. 

This report calls on policymakers to accelerate the creation of a clear framework for GBP stablecoins, incentivise high-quality issuers to establish operations in the UK, and integrate stablecoins into domestic financial infrastructure. With greater regulatory clarity, the UK could maintain its retain talent and capital, increase its influence over the rules of global finance and ensure its position as a global financial centre of excellence.