Fintech Nexus Newsletter (November 7, 2023): UK Looks Forward with Stablecoin Proposals

While America waits (very very patiently) for their stablecoin bill, the UK has put together a proposal for regulating stablecoins and bringing them into the “real economy” as an alternative payment option for goods and services. 

As outlined by the proposal, stablecoins would be regulated under existing traditional finance rules, and the Bank of England would supervise issuers. 

The BoE itself has set out its criteria for supervision.

BUT, as the FT so eloquently points out, no existing stablecoin would meet their criteria. At the moment, stablecoins are mainly used for crypto payments, not in the average day-to-day. 

Issuers falling outside of the BoE’s remit (so, currently, everyone) would have to appoint “payment system operators” that would assess risks and make sure there are appropriate controls. Issuers would also have to fully back stablecoins with deposits in the BoE, and said stablecoins would only be in denominations of pounds sterling. 

Unbacked cryptocurrencies, unsurprisingly, were deemed “unsuitable for payments.”

It’s a step. And to be honest, it’s an encouraging one, where regulators are actually thinking about introducing stablecoins, in some form, into the real world. 

The rules aren’t set to be finalized until 2025, but at least the proposals are some insight into the government’s long-term thinking.  


UK sets out proposals to bring stablecoins into real economy

Bank of England and FCA criteria are latest step in Britain’s drive to position itself as key hub for digital assets


How AI generates more lending opportunities
By Tony Zerucha   
InformedIQ helps lenders find opportunities in today’s challenging environment while others pull back. The main difference is who embraces AI.
Fintech: Brazilian embedded finance champion QI Tech raises $200MM in growing market
By Laurence Smith   
Easier to grow in a growth market
PODCAST The Fintech Coffee Break – Nicky Senyard and Alana Levine, FintelConnect
This week Isabelle spoke to FintelConnect’s Nicky Senyard and Alana Levine, about the rise of Finfluencer marketing for fintechs.
Listen Now
UPCOMING EVENTS The Most Important Policy Event of the Year! – Fintech Policy Summit
Confirmed speakers include Congressman French Hill, Chairman of the Subcommittee on Digital Assets, Mark…
See Details
WEBINAR Do you Know Your Customer? How to prevent fraud with biometric identity verification
Nov 8, 2pm EST
The stakes are high when it comes to preventing fraud and protecting customers’ data and identities. KYC procedures are legally…
Register Now


  • USA: Andreessen Horowitz Leads $60 Million AI Fintech InvestmentFinancial technology startup Black Ore is coming out of stealth with a major investment.
  • USA: FTC’s $18 million fine for Brigit: A warning for cash-advance fintechsThe Federal Trade Commission penalized the finance app Brigit after alleging it misled customers about being able to access “up to” $250 in cash advances in exchange for a monthly fee and made it difficult for them to cancel their subscriptions.
  • USA: Banks tighten standards on loans to companies of all sizes: FedDemand for commercial and industrial loans fell during the third quarter as the Fed pushed up the benchmark interest rate to a 22-year high.
  • UK: OakNorth moves into business banking marketUK small business lender OakNorth is moving into the business banking market, promising SMEs a tailored menu of products and services supported by a dedicated account manager.
  • Global: Adyen Faces Test of Confidence as Investors Doubt Growth StoryFor years, Dutch payments fintech Adyen NV’s founders and management ran things their own way, thanks to some blowout growth.
  • LatAm: N26 to withdraw from Brazil as German fintech ditches overseas ambitionsOnline bank to focus on Europe in effort to reduce losses
  • USA: Affirm ventures into B2B BNPL with Amazon BusinessAmazon and Affirm have joined forces to offer buy now, pay later (BNPL) solutions to sole proprietors or exclusive owners of small businesses who make purchases on Amazon Business, its B2B e-commerce platform. 

Related posts

Prosper Performance Update – September 2022:


Live: Weekly news roundup, March 22, 2023


Mercado Pago launches service for buying, selling and holding cryptocurrencies in Brazil