UK risks falling behind US, EU without GBP stablecoin: Fintech exec
Mark Fairless, CEO of ClearBank, has emphasized the need for the UK to establish British pound stablecoins to maintain its global financial competitiveness amid the shift to on-chain finance. Speaking at Web Summit 2025, Fairless stated that GBP stablecoins would facilitate real-time international payments, though they won't rival the market cap of USD or EUR stablecoins due to the pound's non-reserve status. He stressed the importance of stablecoins in the UK's financial services to remain relevant globally. Meanwhile, the Bank of England has pledged to align with US stablecoin regulations, with a consultation paper proposing a regulatory framework focusing on risk management and reserve requirements, open for feedback until February 2026.
Stablecoins and UK Competitiveness
The United Kingdom needs to regulate and encourage the development of British pound stablecoins to maintain its global competitiveness in financial services, according to Mark Fairless, the group CEO of ClearBank—a bank infrastructure and fintech company. Speaking at Web Summit 2025 in Lisbon, Portugal, Fairless told Cointelegraph: “Stablecoins are a logical extension to reduce friction in international global payments.”
Pound Stablecoins vs Global Reserve Currencies
Fairless explained that British pound stablecoins will not match the market capitalization of dollar- or euro-denominated tokens, as the British pound isn’t a global reserve currency. Currently, dollar-denominated stablecoins hold about $299.4 billion of the nearly $300 billion total stablecoin market cap. (Source: RWA.XYZ)
The Need for UK-based Stablecoins
Despite this, Fairless emphasized the importance of having a British pound stablecoin to keep the UK commercially competitive as onchain finance and internet capital markets grow globally. He stated: “The ability to settle payments internationally in real time requires a GBP stablecoin, and if we don’t have one, we risk falling behind other financial sectors.”
He added that the UK’s financial services market—one of the strongest parts of the country’s economy—requires innovation, although the impact of stablecoins on traditional banking models is yet to be fully understood.
Geostrategic Importance of Stablecoins
Fairless highlighted the geostrategic relevance of stablecoins as governments face pressure to place fiat currencies onchain. This shift aims to compete with countries that are integrating digital and blockchain technology into their financial systems.
Bank of England’s Approach to Regulation
Sarah Breeden, deputy governor of the Bank of England, stated that the UK will align its stablecoin regulations with the US and collaborate with international partners to ensure coordination. She stressed the need for a cautious approach, warning that overly relaxed regulations could lead to systemic risks for the traditional banking sector.
Proposed Regulatory Framework for Stablecoins
The Bank of England recently released a consultation paper outlining a proposed regulatory framework for stablecoin issuers. The proposal encompasses topics like reserve requirements, asset taxonomy, and risk management measures. Industry feedback is being collected until February 2026, with finalized regulations expected in the second half of the year.
(Source: Bank of England)
Risks and Challenges in Stablecoins
Stablecoins pose unique challenges, including risks like depegging, bank runs, and potential instability. These risks underscore the importance of clear regulations to protect traditional financial systems while encouraging innovation in digital finance.
(Magazine: Unstablecoins: Depegging, bank runs, and other risks loom)