The UK risks falling behind the US and EU without a GBP stablecoin

According to Mark Fairless, CEO of banking infrastructure and fintech group ClearBank, the United Kingdom needs to regulate and encourage the development of British pound-based stablecoins to maintain its financial services sector competitive in the global market.

"Stablecoins are a logical extension to reduce friction in cross-border global payments," Fairless said at Web Summit 2025 in Lisbon, Portugal.

The Need for a GBP Stablecoin

Fairless noted that pound-based stablecoins will never be able to match the market capitalization of dollar- or euro-denominated tokens, as the pound is not a global reserve currency. Dollar-denominated stablecoins account for approximately $299.4 billion of the total stablecoin market capitalization, which is nearly $300 billion.

Nevertheless, Fairless said, the UK needs a GBP-based stablecoin to remain commercially competitive as the world transitions to on-chain finance and internet capital markets.

"From a UK capacity perspective, a GBP stablecoin is essential for real-time cross-border payments. Without one, we risk falling behind other financial sectors. The UK financial services market is one of the strongest sectors of the economy, so stablecoins are a logical direction for further development," he emphasized, adding that the impact of stablecoins on the banking sector and traditional business models remains to be seen.

The Geostrategic Importance of Stablecoins

Stablecoins are becoming geostrategically significant as governments respond to increasing pressure to put their fiat currencies on the blockchain to remain competitive with other countries integrating digital and blockchain solutions into their economies.

In Conclusion

The Bank of England promises to keep pace with the US on stablecoins, but, as Fairless noted, this requires active regulation and government support. Otherwise, the UK risks losing its position on the international stage and missing out on the opportunities offered by the rapidly developing digital asset market.