UK at risk of £290bn finance industry ‘being governed overseas’
The UK is at risk of its booming financial services industry being governed overseas after lagging behind international rivals in digital asset innovation, a new report has warned. Banking industry body UK Finance has issued a rallying call to policymakers to move at pace in developing the infrastructure to power tokenisation, or see the country [...]
The United Kingdom faces the risk of its prominent finance industry being governed by foreign jurisdictions due to a slow pace in developing digital asset infrastructure, according to a new report. Banking sector body UK Finance, in collaboration with management consultancy Oliver Wyman, has issued a call to policymakers to accelerate infrastructure development to support tokenisation, or risk losing its competitive advantage.
Tokenisation transforms traditional financial assets like government bonds and cash into digital tokens that can be traded and tracked in real-time. The report warns that if the ecosystem of tokenisation forms in other countries like New York, Frankfurt, or Singapore, the UK's £290bn finance industry will be subject to infrastructure, governance, and pricing rules set elsewhere.
Despite some banks, including Lloyds and Barclays, urging the government to speed up the digitalization of UK markets, UK Finance emphasizes the need for a single national plan for tokenised assets and digital money. The report's chairman, Bob Wigley, urges policymakers to give the Wholesale Digital Markets Champion, Chris Woolard, more authority and decision-making power to drive action across both public and private sectors.
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