Osborne is right: Britain risks missing crypto revolution

By Nigel Green

Forer UK Chancellor George Osborne is absolutely right to warn that Britain is losing ground in the race to regulate and embrace digital assets, especially stablecoins.

While global financial centres are moving quickly to set clear, competitive rules for the future of money, the UK is stuck in delay and indecision.

This reluctance to act decisively is endangering the country’s status as a global leader in finance — and could leave the City irrelevant in the next wave of financial innovation.

Osborne’s comparison to the Big Bang reforms of the 1980s is not an exaggeration. That moment reshaped London’s position in the world. It was bold. It was fast. And it worked. We are again at a defining moment. Digital currencies, tokenised assets, decentralised finance — these are not speculative sidelines.

They’re becoming central to how markets operate, how capital moves, and how value is stored and transferred globally.

Britain has the resources to lead. It has the financial infrastructure, the depth of talent, and the international reputation. But right now, it does not have the political will or regulatory clarity to match. The result is paralysis. And other jurisdictions are moving ahead.

The United States has already passed legislation to support the mainstream use of stablecoins. The EU’s Markets in Crypto-Assets (MiCA) regulation is active. Singapore, Hong Kong, and Abu Dhabi have defined, structured frameworks. These aren’t experimental. These are fully developed regulatory environments backed by legislative action.

Osborne is right to say that blaming regulators for excessive caution no longer works. The real problem is a failure of leadership. Rachel Reeves says she wants Britain to be the best place in the world for innovation.

However, there’s a gap between that rhetoric and what investors and firms are actually seeing on the ground. Vague promises and delayed consultations will not attract capital. They create uncertainty and push decision-makers to set up elsewhere.

The Chancellor’s allies say that progress is underway. They highlight partnerships with the US and point to the UK’s dominant fintech sector. These are useful starting points.

But they are not a substitute for real, binding rules on digital assets. Markets respond to legal clarity. They do not move on intention alone.

Stablecoins in particular should be a priority. They are not niche instruments; they’re foundational infrastructure for the future of payments and settlements. At present, the UK lacks any significant presence in this space. Sterling-based stablecoins remain marginal. Dollar-pegged tokens account for the vast majority of global volume. This is a vulnerability.

The Bank of England has argued for strict conditions on UK-issued stablecoins, including a requirement that they be fully backed by reserves held at the central bank earning no interest.

This approach may be technically cautious, but it strips out any commercial incentive to issue them in the first place. It also leaves sterling playing no meaningful role in the fastest-growing segment of digital finance.

To its credit, the Bank is beginning to review this stance. The Financial Policy Committee is now exploring options for stablecoins to earn a modest return on backing assets. This could help make UK-based issuance more viable.

Yet as Osborne points out, progress remains too slow. Meanwhile, talent and capital flow into jurisdictions with rules already in place.

The bigger concern is that this hesitation sends a message. Britain looks unsure. It looks resistant. That perception matters, especially when the prize is global leadership in a rapidly growing sector.

There is a narrow window to fix this. The Autumn consultation on stablecoins is important, but it must lead directly to legislation. Not another paper. Not more discussion. A law. Investors, developers and firms need to see that the UK is serious, and that they will not be penalised for building here.

This is not about promoting unregulated speculation. It is about creating a rules-based system that allows responsible innovation to flourish. Without that, the sector will remain offshore, and Britain will miss its opportunity to shape the future of financial markets.

Osborne has put this issue on the table in the clearest terms so far. The comparison with the 1980s reform era is apt because it captures the urgency.

The country cannot afford to delay this conversation any further. It needs action, not admiration for other countries’ progress.

If Britain wants to lead, it has to move now.

Author Bio

Nigel Green is deVere Group CEO and Founder.