The United Kingdom risks "walking asleep towards dollarization" without a unified cryptocurrency strategy, says Lord Chris Holmes

Source: Yellow Original Title: The UK Risks “Walking Sleepily Toward Dollarization” Without a Unified Cryptocurrency Strategy, Says Lord Chris Holmes

Original Link: The UK risks ceding digital asset leadership to the United States unless it establishes a coherent and government-wide strategy for cryptocurrencies and emerging technologies, according to Lord Chris Holmes.

In an interview, the veteran advocate for digital inclusion and technological policies stated that the country has taken “positive steps,” but has yet to articulate a national vision that goes beyond financial services.

Holmes argued that the lack of a unifying framework has weakened public debate and slowed regulatory progress.

“When the discussion boils down to Bitcoin-yes or Bitcoin-no, we lose sight of broader opportunities,” he said, pointing out that issues like energy, mobility, climate policy, and modernization of public services rarely include considerations about digital assets, despite their relevance.

An Absent National Strategy

Holmes said that although the Treasury, the FCA, and the PRA are moving forward with consultations on stablecoins and market structures, the UK lacks clarity on how blockchain and digital finance fit across all government departments, from defense to education and local authorities.

This gap, he claimed, prevents the UK from presenting a competitive alternative to jurisdictions like the US, Singapore, Japan, and the UAE.

“There is a risk for any nation of falling behind the United States due to how these areas are being directed from the very heart of the White House.”

What is needed, he argued, is a whole-of-government goal formulation supported by public engagement.

Without it, the UK risks allowing US stablecoins to dominate by default.

He noted that the perception of regulatory delay in the UK is often exaggerated, but that perception alone can deter investment and talent.

Regulation and Innovation Can Coexist

Holmes questioned the belief that regulation stifles innovation, citing the UK fintech sandbox and open banking framework as examples of regulatory interventions that became global models.

He stated that the UK’s common law system adapts well to principles-based norms that remain relevant as technology evolves.

He identified four pillars — clarity, consistency, certainty, and coherence — as the foundation the UK must maintain.

“Who would want to invest in a market that has absolutely no rules?” he asked. He argued that norms with the right scope allow for investor protection, innovation, and market growth simultaneously.

Public Benefit and Digital Identity

Holmes reiterated that blockchain should be deployed to reduce risks in areas such as supply chains, public services, and digital identity.

He cited his extensive work in inclusive technological design and stated that a decentralized, self-sovereign digital identity framework would empower citizens while reducing fraud and administrative burdens.

For decentralized finance (DeFi), he recommended principles based on trust, transparency, inclusion, and accountability, applied consistently rather than through fragmented policy measures.

“Principle-based, results-oriented, and with understood inputs” is the model he believes should encompass blockchain, AI, and all emerging technologies.

A Narrow Window of Opportunity

Holmes said that the UK is not yet behind the US or the EU, but risks falling behind without coordinated leadership from the government center.

“There is a real opportunity for any nation, including the UK, to forge a positive approach,” he stated.

He urged founders to engage directly with policymakers and regulators, describing their participation as essential and non-optional.

“Regulation is not a barrier,” he said, “but there must be clarity. Your voice matters.”