Stablecoins offer limited retail payment appeal in UK, FCA says

The UK Financial Conduct Authority has identified cross-border payments as the strongest practical application for stablecoins after gathering feedback from banks, payment companies and crypto firms during its Stablecoin Sprint. Summary FCA participants identified cross border payments as the strongest current use case for stablecoins, particularly in markets with limited access to U.S. dollars. The regulator said UK consumers have little incentive to switch payment methods, though merchants could benefit from lower costs and faster settlement. Findings from the Stablecoin Sprint have informed the FCA’s stablecoin issuer rules and will shape future policy for stablecoin payments. The March sprint and May trade finance roundtable brought together banks, payment firms, stablecoin issuers and fintech companies to examine payment and programmable finance use cases. According to the UK Financial Conduct Authority, participants in its Stablecoin Sprint said stablecoins currently offer the clearest value in cross-border payments, especially in markets where access to U.S. dollars remains limited, while consumer adoption for everyday retail payments in the UK is likely to develop more slow...