Former UK Chancellor George Osborne pointed out that the regulation of stablecoins in the UK is very slow, warning that London risks losing its digital finance leadership. This highlights the increasing divergence between the UK Treasury and the central bank. (Background: The Bank of England has warned that stablecoins are toxic, emphasizing a return to central bank currency through deposit tokenization.) (Additional Context: The UK government reportedly plans to auction 61,000 bitcoins to save its finances, which could impact the BTC market?) The US appears to be embarking on a new era of exploration in the crypto space, while the UK is struggling. Former Chancellor George Osborne stated bluntly that if London continues to delay on stablecoin and crypto regulation, it will miss the opportunity for the 'next financial explosion,' passing by this millennium's financial empire. Osborne: London has missed a critical point. In an interview with the Financial Times, Osborne pointed out that current Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey's overly cautious attitudes have placed the UK in the 'slow lane' of crypto finance. He recalled the 'Big Bang' reforms pushed by Nigel Lawson in the 1980s, emphasizing that the determination shown back then established London's current status, and if that resolve is not replicated now, the UK will be left far behind by the US, EU, and new forces in Asia. This warning is not unfounded; Osborne currently serves as a member of the Global Advisory Board for the US exchange Coinbase, and is understandably attuned to global regulatory trends. He criticized the UK for attributing the slow development of cryptocurrency to cautious regulation, calling it an excuse, and urged Parliament to legislate directly to establish a clear framework for stablecoins and crypto assets. The Tug-of-War Between the Treasury and the Central Bank: Ambition Meets Concerns Current Chancellor Reeves declared in April her intention to make the UK 'the best place for innovation' and promised to establish sound crypto regulations to boost investor confidence. The Treasury emphasized that London is already the largest fintech hub in Europe and is deepening technical cooperation with the US, covering stablecoin frameworks, digital pound research, and a distributed ledger settlement sandbox. However, the Bank of England is concerned about financial stability risks. Governor Bailey stated at a dinner at the official residence: Stablecoins may have a certain role in the future, but I believe they cannot replace commercial bank money. He called for stablecoins to pass a 'currency test' to ensure their nominal value remains stable and proposed that systemically important pound stablecoins must be 100% backed by central bank non-interest-bearing deposits. This effectively closes the door on commercialization. Although the Financial Policy Committee discussed a proposal in June to allow guaranteed assets to obtain partial returns and announced a consultation to be released in the fall, Bailey remains skeptical about high street banks issuing stablecoins, leaning more towards promoting 'tokenized deposits.' Osborne criticized this hesitation as 'self-limiting.' In his view, if Reeves' grand vision lacks legislative backing, it will ultimately remain mere political rhetoric. International Steps Accelerate, Pressure on London Intensifies Market data shows that dollar stablecoins account for as much as 99% of the global $250 billion scale, while pound stablecoins are almost absent. Osborne fears that if London continues to delay, it will not only lose its first-mover advantage but even lose space for followers. In response, Chancellor Reeves' camp advocates for a 'steady and cautious' approach, believing that clear regulation can protect consumers and reduce systemic risks; Osborne refutes that excessive caution amounts to abandoning future gains. Osborne threw the question back to the government: does London want to replicate the disruptive reforms of 40 years ago or maintain the status quo and be pushed out by global trends? A legislative period lasting one to two years will determine the UK's positioning in the era of digital assets. Related Reports: UK's second-largest bank Barclays: Ban on using credit cards to purchase cryptocurrencies starting 6/27, fearing users may not repay card debts. Binance appoints Gillian Lynch as head of Europe and the UK, leading strategic expansion and deepening cooperation with European regulators. 'Observation: Has the UK lost in cryptocurrency? Former Chancellor Osborne admits to being 'left behind by the world.' This article was first published by BlockTempo (the most influential blockchain news media).