Industry warns UK risks digital dollarisation without stablecoin reform

Fintech leaders told MPs that unless the U.K. backs a competitive sterling stablecoin regime, dollar-denominated stablecoins could dominate future payments systems.

UK lawmakers were warned Wednesday that without proactive support for pound-denominated stablecoins, Britain’s digital finance landscape could be increasingly overtaken by dollar-based alternatives — with broader implications for monetary sovereignty and the City’s global fintech clout.

Speakers from the fintech industry told the Financial Services Regulation Committee that dollar-denominated stablecoins already dominate the global market and, unless the U.K. moves decisively to build a viable sterling stablecoin ecosystem, firms, innovators, and liquidity may increasingly coalesce around the greenback.