UK May Fall Behind US and EU Without GBP Stablecoin, Says Fintech Executive

The UK needs to foster the creation and regulation of British pound stablecoins to maintain its competitiveness in the global financial services sector, as highlighted by Mark Fairless, the CEO of ClearBank, a bank infrastructure and fintech company.

Key Takeaways

The UK needs to develop GBP stablecoins to remain competitive in the global market.
Stablecoins can help streamline international payments, according to Fairless.
GBP stablecoins are unlikely to match the market cap of dollar or euro tokens due to the pound not being a global reserve currency.
The Bank of England is working on a regulatory framework for stablecoins, emphasizing cautious regulation to avoid systemic risks.

UK risks falling behind US, EU without GBP stablecoin: Fintech exec

Importance of GBP Stablecoins

During an interview with Cointelegraph at Web Summit 2025 in Lisbon, Portugal, Fairless stated, “Stablecoins are a logical extension to reduce friction in international global payments.” He acknowledged that while pound stablecoins would never rival the dollar or euro stablecoins in market capitalization, developing such assets is crucial for the UK to stay competitive as the global economy moves toward onchain finance and digital capital markets.

United Kingdom, Stablecoin
Dollar-denominated stablecoins account for approximately $299.4 billion of the nearly $300 billion total stablecoin market capitalization. Source: RWA.XYZ

Fairless emphasized that the UK's financial services sector is one of its strongest economic pillars, indicating that adopting stablecoins could be a vital next step. However, he noted that the consequences of stablecoins for traditional banking and existing business frameworks remain uncertain.

As stablecoins gain geopolitical importance, governments worldwide are feeling pressure to digitize their fiat currencies onchain to compete with nations that are integrating digital assets and blockchain technology into their economies.

Related:__Bank of England’s Breeden warns that diluted stablecoin regulations could threaten stability

Regulatory Measures from the Bank of England

Sarah Breeden, deputy governor of the Bank of England, confirmed that the UK will keep up with US regulations on stablecoins and collaborate closely with international partners to ensure regulatory harmony. Breeden stressed the importance of a careful approach, warning that easing stablecoin regulations excessively could lead to systemic risks in the banking sector.

The Bank of England has recently published a consultation paper presenting a proposed regulatory framework for stablecoins within the UK.

United Kingdom, Stablecoin
Bank of England stablecoin regulatory framework timeline. Source: Bank of England

This proposal outlines potential requirements for reserves, asset classifications, and risk management regulations intended for stablecoin issuers. The framework is currently open for feedback from the industry until February 2026, with finalized regulations anticipated in the latter half of the year.

Magazine:__Unstablecoins: Depegging, bank runs, and other risks loom