Major UK trade groups are pushing the government to include blockchain technology in the upcoming UK-US Tech Bridge agreement. In a letter addressed to Business Secretary Peter Kyle and Economic Secretary Lucy Rigby, groups including the UK Cryptoassets Business Council, TheCityUK, and the Association of British Insurers warned that the UK risks falling behind in global finance if digital assets are not included in the deal.
The groups emphasized two key blockchain applications: stablecoins and tokenization. Stablecoins, which are digital tokens pegged to traditional currencies like the pound or dollar, enable faster and more stable payments without the price volatility of other cryptocurrencies. Tokenization involves converting real-world assets such as real estate, company shares, or art into digital tokens that can be traded online.
The trade groups cautioned that other regions, particularly Asia and the Middle East, are moving much faster with clearer regulatory frameworks for stablecoins and blockchain systems. If the UK delays, local businesses could face reduced opportunities, with jobs, investment, and innovation potentially moving abroad. UK companies might end up following rules set by other countries rather than helping to shape them.
Inclusion of blockchain in the Tech Bridge could bring significant benefits including clearer regulatory frameworks for businesses, increased innovation as companies invest with more confidence, greater global influence for the UK in rule-making, and new job creation in financial and technological sectors.