At a time when a struggling pound is contributing towards inflation that is harming everyday British consumers, an ‘unhealthy dependency on US stablecoins’ is hamstringing the UK economy. New research conducted by poundtoken and Myna explores the situation below.
Today, 99% of the global stablecoin market cap is tied to the US Dollar, which dominates over $143 billion of the approximate $145 billion global stablecoin market.
The US Dollar Fiat Market-Cap is currently equivalent to 1,070,821,412 BTC. This is over 5 times greater than the UK Pound Sterling fiat cap of 198,576,742 BTC.
- Source: CoinMarketCap
Assuming potential proportionality between the two currencies and their fiat-stablecoin derivatives, the UK economy could be losing as much as 20 billion pounds due to our dependency on US stablecoins.
“As our calculations suggest, the impact on the UK economy is substantial. What we are seeing as the UK’s leading crypto accountancy firm is 9/10 of our clients treasurying in US stablecoins. But we want to change this – Myna is partnering with British-issued stablecoin GBPT to provide a viable alternative.
We have some of our own employees already being paid in GBPT and offer this as an alternative payment method to our clients. This is fantastic from an accounting perspective as it greatly simplifies the process by removing the need to calculate currency exchanges within day-to-day crypto accounting.” – Joe David, Founder Myna
These numbers are not overly ambitious: The United Kingdom received a whopping $233 billion in raw transaction value of cryptocurrency from July 2021 to June 2022, according to an official report released last month by CryptoAM.
If just 10% of these were transacted in a UK stablecoin like GBPT, 10’s of billions of pounds could come flowing back into our economy.
‘At CryptoUK, we very much welcome the government’s position to make the UK a global crypto hub. The proposition of a GBP stablecoin would certainly provide one opportunity for the UK to enhance our position in the digital assets space. As members of CryptoUK, we support the work that poundtoken.io (the first locally regulated GBP stablecoin issuer, with GBPT) are doing in this space and hope that their vision to allow digital asset settlements in our local currency will provide opportunities to build on the UK’s economic proposition in this space.’ – Su Carpenter (CryptoUK)
A recent study released this week showed that London is the world’s most crypto-ready city for business. With this fact in mind, the world’s crypto capital should do business with a GBP-denominated stablecoin.
‘To help realise the UK’s potential as a ‘crypto hub’, policymakers should work towards integrating GBP fiat-stablecoins into British society. Businesses that choose to use this technology can see significant benefits when it comes to their financial operations. We are fully dedicated to helping the UK realise its potential as a global crypto hub.’ – Alan Sun, CEO @ poundtoken.io