So here’s the tea: George Osborne, the guy who used to control Britain’s purse strings, just dropped a Financial Times op-ed basically saying “Hey UK, you’re about to miss the crypto boat entirely.” And honestly? He’s not wrong.
Picture this: While the US is rolling out red carpets for stablecoins and Singapore is practically throwing crypto parties, Britain is sitting in the corner going “But what if it’s risky?” It’s like watching your friend refuse to invest in Apple in 2007 because “phones are just for calling people.”
The Reality Check
Osborne (who now sits on Coinbase’s advisory council, because of course he does) is calling out the Bank of England for being overly cautious. The BoE’s Governor Andrew Bailey keeps insisting that any stablecoin “must meet a test of money” – which sounds smart until you realize the US dollar-linked stablecoins already control 99% of the $250 billion global market.
Meanwhile, Britain’s 2023 regulations basically killed UK stablecoins before they could even launch. The rules required full central bank backing, which made them about as commercially viable as selling ice to penguins. Several UK stablecoin projects just… gave up.
Why This Actually Matters
Here’s where it gets interesting: Osborne is comparing this moment to the Big Bang reforms of the 1980s – those massive financial deregulation moves that basically made London a global finance powerhouse. He’s saying we’re at another crossroads, except this time Britain might choose the wrong path.
The competition isn’t waiting around. The US Congress is working on landmark stablecoin legislation (the Genius Act), while the EU, Singapore, Hong Kong, and Abu Dhabi are all racing ahead with clear crypto frameworks. Britain? Still “exploring modest returns on stablecoin reserves.” Thrilling stuff.
The Industry Speaks Up
It’s not just Osborne sounding the alarm. Mark Aruliah from blockchain analytics firm Elliptic is basically screaming “TIMING MATTERS!” while pointing to successful frameworks in the US and Singapore. Even Philip Hammond (another former Chancellor) now chairs a crypto infrastructure company called Copper – because apparently, if you can’t beat ’em, join ’em.
Keith Grose from Coinbase UK talks about Britain having a “second-mover advantage” – the idea that you can learn from everyone else’s mistakes. But here’s the catch: that only works if you actually move. Standing still while calling it strategy is just… standing still.
The Bottom Line
The Treasury promises “robust rules around crypto” this autumn, which sounds great until you remember that crypto moves at internet speed, not government speed. While Britain debates whether stablecoins are “real money,” the rest of the world is building the infrastructure for the next financial revolution.
Sometimes being cautious is smart. Sometimes it’s just expensive. Britain’s about to find out which one this is.