George Osborne Warns UK Is Falling Behind in Global Crypto Race

The United Kingdom is at risk of falling behind in the rapidly changing global cryptocurrency market, according to former Chancellor George Osborne. In a recent op-ed published by the Financial Times, Osborne expressed concern that the nation has already missed the first wave of crypto innovation, and now stands to miss the second, particularly amid the growing prominence of stablecoins.

“What I see makes me anxious,” he wrote. “Far from being an early adopter, we’ve allowed ourselves to be left behind.” Osborne, currently serving as an advisor to leading crypto exchange Coinbase, attributed the UK’s lagging position to sluggish regulatory action and a lack of urgency from policymakers.

The World Is Moving, But the UK Is Standing Still

While jurisdictions such as Singapore, Hong Kong, and Abu Dhabi have moved swiftly to implement clear and supportive cryptocurrency regulations, actively welcoming digital finance innovation, the United Kingdom continues to lag behind. According to former Chancellor George Osborne, other regions are rapidly establishing themselves as global crypto hubs, while the UK appears to be passively observing from the sidelines.

The former chancellor said that stablecoins, unlike the volatile Bitcoin, are tied to realworld currencies and could become the next big thing in the market. But the UK is dragging its feet. The US has already passed the Genius Act, a law that creates rules for stablecoins, and now most stablecoins are pegged to the US dollar. That means the US is setting the pace, again.“The crypto revolution may have started with dreams of replacing the dollar,” Osborne wrote, “but instead it’s only made the dollar stronger. The pound won’t even play backup at this rate.”

Missed Opportunities and Mixed Signals

Osborne also criticized current leadership for lacking decisiveness. Although Chancellor Rachel Reeves recently pledged to “drive forward” with crypto regulation, Osborne argued the statement lacked specificity and urgency. He further pointed to the Bank of England’s cautious approach, with Governor Andrew Bailey emphasizing the need for stablecoins to meet criteria such as “singleness of money” before they are considered viable alternatives to fiat currency.

“This hesitation risks irrelevance,” Osborne warned. He is not alone in his concern. Another former chancellor, Philip Hammond, now serves as chair of the digital asset infrastructure firm Copper, signaling increasing interest in the sector from former government officials. Meanwhile, in the United States, retail investors already have access to Bitcoin exchange-traded funds (ETFs) through public markets. In contrast, UK investors remain restricted from participating in similar financial products. Osborne cited this as yet another indication that the country is falling behind while the rest of the world accelerates its adoption of digital assets.

Bank of England Still Dragging Its Feet on Stablecoins

Even though stablecoins are gaining speed around the world, the Bank of England is still being super cautious. Governor Andrew Bailey keeps questioning whether stablecoins actually count as “real money.” He said something like, If I give you a pound, it should be worth the same as your pound, so any digital version has to work exactly like that, one for one.

The Bank of England is now considering whether to allow stablecoins to generate modest returns on their underlying reserves, a notable shift from its previously more conservative stance. However, despite this reconsideration, there remains no definitive regulatory roadmap. A consultation paper is anticipated later this year, but critics such as former Chancellor George Osborne remain skeptical of the slow pace.

Final Warning or Missed Boat?

Osborne’s overarching message is clear. The United Kingdom must act decisively and without further delay if it hopes to play a meaningful role in the future of digital finance. According to him, the government’s cautious and reactive approach is jeopardizing the nation’s potential to emerge as a global leader in crypto innovation. “It’s time to catch up,” Osborne emphasized.

Whether policymakers will respond with urgency remains to be seen. But as other countries continue to shape the digital financial landscape, the UK’s prolonged inaction is becoming increasingly conspicuous.