Osborne Warns UK Crypto Hesitation Risks Global Competitive Edge

The UK risks falling behind in the global race to adopt cryptocurrency, according to former Chancellor George Osborne, who has been urging the government and central bank to accelerate progress. Osborne, a member of Coinbase’s Global Advisory Council, has criticized the cautious approach of current Chancellor Rachel Reeves and Bank of England (BoE) Governor Andrew Bailey, arguing that their hesitancy could see the UK lose its competitive edge in the digital finance space [1].

Osborne compared the current situation to the 1980s financial “Big Bang” reforms, which helped position London as a global financial hub. He sees the crypto sector as offering a similarly transformative opportunity, but only if the UK acts swiftly. He warned that delays in developing a legal framework for stablecoins, and in granting retail investors access to crypto derivatives and exchange-traded notes (ETNs)—products already available in the US and the EU—could lead to the migration of crypto businesses and investment away from the UK [1].

The former chancellor stressed that leadership is essential, calling for the UK to emulate the regulatory developments seen in the U.S., the EU, and even in regions like Abu Dhabi and China Hong Kong. He pointed out that while Reeves has expressed support for the development of stablecoins, the lack of clarity on how this will be implemented in practice remains a concern. Similarly, Bailey’s reluctance to encourage commercial banks to issue stablecoins could slow progress further [1].

Osborne also highlighted a key issue in public perception, noting that the UK still treats crypto as a form of gambling. This view, he argued, is outdated and limits the potential for innovation in the financial sector. Coinbase CEO Brian Armstrong echoed this sentiment, stating that the UK has yet to embrace crypto as a legitimate financial tool, despite having around eight million individuals who have already invested in digital assets [1].

While Reeves has pledged to make the UK the “best place” for crypto innovation, Osborne cautioned that promises alone are not enough. He cited examples such as the availability of Bitcoin ETFs in the US, which UK investors are still not allowed to access, as evidence of the gap that exists. He urged the government to make “radical decisions” before the window of opportunity closes, emphasizing that the UK must act now to maintain its position in the global financial system [1].

Source: [1] George Osborne Warns UK Risks Falling Behind in Global Crypto Adoption Race (https://www.livebitcoinnews.com/george-osborne-warns-uk-risks-falling-behind-in-global-crypto-adoption-race/)