UK Needs Pound Stablecoins to Compete in Digital Finance

The British pound requires modern digital infrastructure to remain competitive with the dollar and euro as global finance undergoes a fundamental transformation toward onchain and internet-native systems. Mark Fairless, group CEO of bank infrastructure and fintech company ClearBank, argues that the United Kingdom’s financial services sector risks falling behind without regulated British pound stablecoins. This digital evolution represents more than technological advancement—it’s a strategic necessity for maintaining the UK’s position in global financial markets as payment systems and financial instruments migrate to blockchain-based platforms.

Fairless’s assessment comes at a critical juncture for international finance, where traditional banking systems increasingly compete with decentralized financial networks. The ClearBank CEO’s perspective, shared during an interview at Web Summit 2025 in Lisbon, Portugal, highlights how the absence of pound-denominated digital assets could marginalize UK financial institutions in the emerging digital economy. As major economies develop their digital currency strategies, the UK faces pressure to establish its own digital financial rails or risk ceding ground to dollar and euro-dominated systems that are rapidly building market share in the stablecoin space.

Stablecoins represent a logical extension of existing payment systems specifically designed to reduce friction in international global payments, according to Fairless’s analysis. These digital assets, pegged to traditional currencies like the British pound, offer settlement speeds and cost efficiencies that traditional banking networks struggle to match. The ClearBank CEO’s position reflects growing recognition within traditional finance that blockchain-based payment solutions can complement rather than replace existing financial infrastructure when properly regulated and integrated.

The potential applications for pound stablecoins extend beyond simple peer-to-peer transactions to include cross-border trade settlements, remittance markets, and corporate treasury operations. By providing near-instant settlement at lower costs than conventional systems, regulated British pound stablecoins could enhance the UK’s appeal as a financial hub for international businesses. Fairless’s comments suggest that the development of these digital assets should be viewed as infrastructure modernization rather than speculative cryptocurrency adoption, positioning them as practical tools for improving financial system efficiency.

Despite the clear need for British pound stablecoins, Fairless provides a sober assessment of their potential market position relative to dollar and euro-denominated alternatives. The ClearBank CEO explicitly stated that pound stablecoins will never equal the market capitalization of dollar or euro tokens because the British pound isn’t a global reserve currency. This realistic perspective acknowledges the structural limitations of the UK currency in international finance while still advocating for strategic development of digital pound infrastructure.

The market capitalization disparity reflects broader global financial dynamics where the US dollar dominates international trade and reserves, followed by the euro. Rather than attempting to compete directly with these currencies for global dominance, Fairless suggests the UK should focus on developing pound stablecoins that serve specific market needs where British financial services maintain competitive advantages. This targeted approach acknowledges that while pound stablecoins may not achieve the scale of their dollar counterparts, they can still play vital roles in Sterling-denominated transactions and UK-focused financial ecosystems.

The regulatory framework for these digital assets becomes particularly important given their more limited potential scale. Fairless emphasizes that the United Kingdom needs to regulate and encourage development simultaneously—creating guardrails that ensure stability and consumer protection while fostering innovation that keeps pace with global competitors. This balanced approach could position UK financial institutions to capture value in niche markets where pound-denominated digital assets offer distinct advantages, even if they never challenge the dollar’s dominance in global stablecoin markets.