UK FCA: Stablecoins Have Greatest Potential for Cross-Border Payments, Domestic Retail Adoption Remains Limited

TechFlow news, July 29, according to Cointelegraph, the UK Financial Conduct Authority (FCA) released a "Stablecoin Sprint" policy research report, gathering opinions from industry participants such as banks, payment companies, and stablecoin issuers. The report pointed out that stablecoins recently demonstrate the most prominent advantages in the cross-border payment sector, offering significant help especially to emerging markets with limited access to US dollars; however, in domestic retail payment scenarios in the UK, since the existing payment system is already relatively fast and low-cost, consumers lack the motivation to switch, and adoption speed is expected to be relatively lagging. The above research findings have been incorporated into the final regulatory rules released by the FCA on June 30, requiring stablecoins issued in the UK to be fully backed by reserve assets and redeemable at face value.