The UK’s minority reform formally rejected the Bank of England’s proposal to limit Stubcoin Holdings and a broader plan to introduce Central Bank Digital Currency (CBDC).
In a September 18 statement on X, party policy director Zia Yusuf, alongside party figure Nigel Farage, warned that the measure would undermine Britain’s competitiveness in the global digital economy.
Last week, the Bank of England proposed limiting stability exposures for individuals and businesses. Under the proposed proposal, citizens will be limited to holding between £10,000 and £20,000 in systematic stubcoin, while businesses will face up to £10 million.
Regulators argue that the plan aims to reduce financial risks as digital assets become more mainstream.
But the Reform Party leader framed the proposal as an attack on innovation rather than parents.
They argued that limiting the use of stubcoin risks suffocating the demand for UK government debt, while strengthening its global rival position.
Dollar-drawn stubcoins like the USDC and USDT funnels have strengthened dollar control in digital finance, significantly increasing liquidity in the US Treasury Department, according to the statement. In contrast, the UK does not have a mechanism equivalent to backstop demand for gold leaf.
Yusuf wrote:
“Question now: Where is the UK equivalent? Where is the stubcoin backed by the deep liquid pound? Is there anything that the global market can trust, or what will lead to new demand for UK guilt? The policymakers here have been openly hostile to innovators.
With this in mind, Yusuf argued that “stablecoins are not a risk to financial stability.” Instead, he described the assets as follows:
“(a) a bridge between the digital world and the traditional banking system. A bridge between investors and opportunities between entrepreneurs and clients. They are simply new rappers over money.
Not available in CBDC
The Reform Party has also fought hard against the creation of the digital pound.
According to the party, the state-backed CBDC will hand over financial activities to the Bank of England to “unprecedented control,” suppress competition and thwart private sector innovation.
Instead, they advocate for regulated, privately issued stubcoins to government agencies that can promote growth without direct control of citizens’ wallets.
To support that approach, the parties said they will advance the proposed encryption and digital finance bill to establish a transparent, proportional regulatory framework.
By creating rules that balance consumer protection and market freedom, reforms argue that the UK could emerge as a leader in the global stubcoin competition, creating new employment opportunities for fintech and digital finance.
This stance illustrates another step in the party’s code embrace. Earlier this year, it became one of the UK’s first political groups to accept donations in Bitcoin and other digital assets.
(Editor’s note: Context on British politics.
The reform holds five congressional seats within the current government behind workers, conservatives, Liberal Democrats, SNP and Sinn Féin. Current UK laws have minimal shaking.
However, the labor-supporting collapse has put reforms at the top of YouGov votes in over 50s around the hypothetical SNAP elections. The next election is scheduled for 2029. )
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