Are we to see dollarisation of the UK? The Bank of England's struggle with the USD stablecoin revolution
Written by James Tylee founder of Cyber.FM
The dawn of a digital monetary era
In the rapidly evolving landscape of global finance, USD stablecoins (digital tokens pegged to the US dollar), stand at the forefront of a monetary revolution. These assets, which maintain a stable value through reserves of cash or short-term US Treasuries, have exploded in utility, powering everything from cross-border remittances to decentralized finance (DeFi) protocols. According to McKinsey, the total market capitalization of stablecoins has surpassed $250 billion, with USD-denominated variants such as USDT and USDC dominating over 90% of the space. This shift promises disintermediation of traditional banking intermediaries, lower transaction costs and borderless economic activity, fundamentally challenging the role of central banks worldwide.
Yet, as this revolution unfolds, a stark divide emerges between regulatory agility and inertia. In the US, forward-thinking legislation such as the GENIUS Act of 2025 has harnessed industry expertise to inte…
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