Pegged: A British-US alignment?
Britain's stablecoin framework suggests a quiet but significant shift away from the EU and towards the US.
Editorial Hello
Greetings. We trust all our American readers enjoyed their 250th Independence Day celebrations.
It seems appropriate in light of this milestone — even if it doesn’t look like it based on the political rhetoric out of Labour — that something significant is happening in UK financial services.
Whether the wider market has fully recognised it or not, the UK appears to be steadily moving towards greater alignment with the US.
The Bank of England today announced that it will ease the implementation of the Basel-derived countercyclical capital buffer, opting for a more gradual and flexible approach than many had expected. On its own, the decision may look like a technical recalibration of prudential policy, but in many respects, it signals a greater willingness to calibrate prudential rules in favour of competitiveness. Thus, in alignment with US rather than EU norms.
But there is another development that has received far less attention.
