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The United Kingdom is lagging in the digital asset sector, especially regarding stablecoins, despite the technology’s potential to aid the nation in maintaining its prominent status in global financial services.
This was a primary message in a recent Financial Times op-ed by George Osborne, the former UK chancellor who has become a crypto advocate and joined Coinbase as a consultant last year.
“What I observe makes me uneasy. Rather than being an early adopter, we have permitted ourselves to fall behind,” Osborne remarked, referring to his homeland, the UK.
A major worry for Osborne is the slow development of stablecoins — onchain representations of fiat currencies that aid in diminishing friction in transactions and cross-border transfers.
London’s stature as a global financial center, he contended, originated from its readiness to adopt innovation — an approach it has nearly forsaken.
“Regarding crypto and stablecoins, as on far too many other matters, the harsh reality is this: we’re being utterly left behind. It’s time to catch up,” Osborne expressed.
While the United States moves forward with legislation like the GENIUS Act to reinforce the dollar’s position as the leading global reserve currency, Osborne cautioned that the UK government’s inaction “ensures the pound won’t even occupy a supporting role,” underlining the dollar’s formidable lead in the stablecoin arena.
This represents a substantial setback, considering the pound sterling ranks among the top five most traded currencies worldwide, according to the Bank for International Settlements.
Osborne’s op-ed amounted to a sharp criticism of current Chancellor Rachel Reeves, who, he pointed out, has not delivered on her commitment to take significant action on stablecoins.
Related: Surge in RWA tokenization anticipated after passage of GENIUS Act — Aptos executive
Coinbase’s satirical advertisement ignites debate
Osborne’s op-ed came after the launch of a provocative musical advertisement by Coinbase, the company he advises, which lambasted the UK for its fiscal mismanagement and persistent cost-of-living challenges.
Titled “Everything Is Fine,” the advertisement mocks the grim circumstances of the nation, possibly aiming to underscore crypto’s potential as a wealth-generating substitute.
“If everything is fine, then don’t modify anything at all. But when the financial system isn’t serving so many individuals in the UK, it must be updated,” Coinbase wrote in a YouTube caption accompanying the advertisement.
Coinbase CEO Brian Armstrong stated last week that major UK television networks banned the advertisement. However, CNBC reported it could not independently verify his statement as of Monday.
While hard to quantify precisely, Coinbase has been a significant participant in US crypto lobbying, particularly in 2024, when it invested millions of dollars into efforts during a critical election year, according to OpenSecrets.
As Politico reported, the company began lobbying over a decade ago and has since significantly escalated its efforts. In fact, the publication noted that Coinbase has outspent every other crypto firm on lobbying.
Its latest advertising efforts and Osborne’s op-ed imply the company is reorienting its focus on the UK — a market it first penetrated in 2015.
Related: UK regulator rescinds ban on crypto ETNs for retail investors
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