UK industry groups are urging the government to prioritize blockchain technology in the upcoming UK-US Tech Bridge agreement to ensure that Britain remains at the forefront of global financial standards. The exclusion of blockchain could potentially hinder the country’s ability to influence and shape the future of finance on a global scale.
According to a report by Bloomberg, a coalition of twelve trade bodies representing finance, technology, and cryptocurrency sectors have written a letter to Business Secretary Peter Kyle and Economic Secretary to the Treasury Lucy Rigby, emphasizing the importance of including distributed ledger technology in the Tech Bridge agreement. The groups believe that digital assets, particularly stablecoins and tokenization, play a crucial role in the economic strategies of both countries and should be a core component of the partnership.
Stablecoins, which are cryptocurrencies pegged to fiat currency and backed by reserves, are gaining traction in mainstream finance due to their ability to facilitate faster and more efficient transactions. Tokenization, on the other hand, involves mapping traditional assets onto blockchain ledgers, enabling quicker settlement cycles and broader investor access.
The UK government has already taken steps to regulate the cryptocurrency industry by introducing the Cryptoassets Order 2025, which brings crypto exchanges, custodians, and issuers under the Financial Services and Markets Act perimeter. The Financial Conduct Authority has also initiated consultations on licensing requirements for stablecoin issuers and crypto custodians, as well as implementing a prudential regime for crypto firms to ensure capital adequacy and proper conduct.
The Tech Bridge agreement between the US and UK is seen as a critical opportunity to align regulatory standards and policies with Washington at a pivotal moment in the development of digital assets. With the US already establishing a federal framework for stablecoins, the UK risks falling behind in the global race for dominance in the cryptocurrency space if it does not act swiftly.
Global financial bodies are pushing for modernization in cross-border payments and the adoption of digital currencies like stablecoins to enhance efficiency and reduce costs. The UK’s ambition to become a global hub for cryptoasset technology hinges on its ability to coordinate with international partners and stay abreast of emerging standards.
As the UK navigates the complexities of regulating the crypto industry, the inclusion of blockchain in the Tech Bridge agreement would signal the country’s commitment to competitiveness in the evolving landscape of programmable money. By aligning with Washington’s policy direction and embracing blockchain technology, Britain can position itself as a key player in shaping the future of finance on a global scale.
This article was originally published on BeInCrypto and has been adapted for WordPress integration.