Observation: Did the UK lose in Crypto Assets? Former Chancellor Osborne admits "being left behind by the world"

Former UK Chancellor George Osborne pointed out that the regulation of stablecoins in the UK is very slow, warning that London may lose its leading position in digital finance. This clearly shows the increasing divergence between the UK Treasury and the Central Bank. (Background: The Bank of England warns that stablecoins are toxic, emphasizing the return of currency to central control via deposit tokenization) (Additional context: The UK government is rumored to auction 61,000 Bitcoins to save the treasury, which could impact the BTC market?) While the US seems to embark on a new era of exploration in the crypto field, the UK cannot afford to smile. Former Chancellor George Osborne remarked harshly that if London continues to delay on stablecoin and crypto regulation, the sprint towards the “next financial explosion” will pass by this millennium’s financial empire. Osborne: London missed a key opportunity. In an interview with the Financial Times, Osborne stated that the current Chancellor Rachel Reeves and the Governor of the Bank of England Andrew Bailey’s overly cautious attitudes have put the UK on the “slow track” of crypto finance. He recalled the “Big Bang” reforms promoted by Lawson in the 1980s, stressing that the determination to take decisive action back then established London’s current position, and without replicating that resolve, the UK will be left far behind by the US, EU, and emerging forces in Asia. This warning is not unfounded; Osborne currently serves on the Global Advisory Council of the US exchange Coinbase, which naturally gives him a sense of global regulatory trends. He criticized the UK’s slow development in cryptocurrencies as merely an excuse for regulatory caution and called on Parliament to legislate directly to establish a clear framework for stablecoins and crypto assets. The tug-of-war between the Treasury and the Central Bank: Ambition meets concern. The current Chancellor Reeves declared in April her intention to make the UK the “best place for innovation” and promised to establish sound crypto regulations to boost investor confidence. The Treasury emphasized that London is already the largest fintech hub in Europe and is deepening technical cooperation with the US, covering stablecoin frameworks, digital pound research, and a sandbox for decentralized ledger settlements. However, the Bank of England is concerned about financial stability risks. Governor Bailey stated at a dinner that while stablecoins may have a certain role in the future, he believes they cannot replace commercial bank money. He insisted that stablecoins must pass a “currency test” to ensure their notional value remains stable and suggested that systemically important pound stablecoins must be fully backed by interest-free deposits from the central bank. This move effectively closes the door on commercialization. Although the Financial Policy Committee discussed a plan in June to allow secured assets to earn some return and announced a consultation in the autumn, Bailey still expressed doubts about issuing stablecoins by high street banks, preferring to promote “tokenized deposits.” Osborne criticized this hesitation as “self-limiting.” In his view, Reeves’ grand vision, if lacking legislative support, would ultimately remain mere political rhetoric. As international steps accelerate, pressure on London increases. Market data shows that dollar stablecoins account for as much as 99% of the global $250 billion scale, while pound stablecoins are almost absent. Osborne is concerned that if London continues to delay, it will not only lose its first-mover advantage but will also compress the space for followers. In response, Chancellor Reeves’ camp advocates for a “steady and cautious approach,” believing that clear regulation can protect consumers and reduce systemic risks; Osborne counters that excessive caution equates to abandoning future gains. Osborne threw the question back to the government: Does London want to replicate the disruptive reforms of 40 years ago, or will it maintain the status quo and be sidelined by global trends? The legislative period of one to two years will determine the UK’s position in the digital asset era. Related reports: Barclays, the second-largest bank in the UK, will ban credit card purchases of cryptocurrencies starting on June 27, fearing that users may not be able to repay their card debts. Binance appoints Gillian Lynch as head of Europe and the UK, leading strategic expansion and deepening European regulatory cooperation. Did the UK lose in the cryptocurrency race? Former Chancellor Osborne admitted that “we have been left behind by the world.” This article was first published in BlockTempo, the most influential blockchain news media.