UK regulator says stablecoins likely to see slow uptake in retail payments

UK regulator says stablecoins likely to see slow uptake in retail payments Stablecoins have the greatest near-term utility in cross-border payments, but their adoption in UK retail payments is likely to be slow, the UK Financial Conduct Authority said, according to Cointelegraph. In policy discussions the FCA held with banks, payment companies and stablecoin issuers, participants said stablecoins offer the biggest cross-border payment advantages in emerging markets with limited access to U.S. dollars. By contrast, benefits are limited in major remittance corridors where existing payment networks are already fast and inexpensive. UK consumers have little incentive to switch from current payment methods, while merchants could benefit from lower costs and faster settlement times. The outcome of those discussions was reflected in the FCA’s June 30 final rules requiring stablecoins issued in the UK to be backed 100% by reserve assets and redeemable at par, and it will also be used in future policy on stablecoin payments.