UK highlights stablecoins for cross-border payments

• A UK government policy paper identified stablecoins as a key technology for improving cross-border payments.
• The report said digital assets could make international transfers faster, cheaper and more efficient.
• The paper forms part of the UK's broader strategy to modernise payment infrastructure while maintaining regulatory oversight.

The UK government has identified stablecoins as a potential tool for improving cross-border payments in a new policy paper examining the future of digital finance.

The paper said stablecoins could help reduce the cost and settlement time of international payments while supporting greater efficiency in global financial transactions.

The policy paper forms part of the UK's wider efforts to encourage financial innovation while ensuring appropriate consumer protection and financial stability.

Stablecoins are digital tokens designed to maintain a stable value by being linked to assets such as the US dollar or other fiat currencies.

Governments and regulators around the world are continuing to develop rules governing the issuance and use of stablecoins in payment systems.

The latest policy paper signals that the UK continues to view regulated stablecoins as a potential component of future cross-border payment infrastructure.