UK FCA Policy Report: Cross-border Payments Are the Most Important Application Scenario for Stablecoins

July 29th News, according to Cointelegraph, a policy report on Stablecoin Sprint released by the UK Financial Conduct Authority (FCA) shows that cross-border payments are the most clear near-term application scenario for stablecoins, while adoption at the UK domestic retail end is expected to be relatively slow. Participating institutions stated that stablecoins are most advantageous in emerging markets where dollar acquisition is limited, but their advantages are limited in major corridors with existing fast and cheap payment systems. UK consumers lack motivation to switch, as existing payment methods are already sufficiently fast and cheap, but merchants can benefit from lower costs and faster settlement. This feedback has been incorporated into the FCA's final rules published on June 30th, which require stablecoins issued in the UK to be fully backed by reserve assets and redeemed at face value.