Cryptocurrencies should bolster Brexit Britain’s troubled financial services sector
As I have been quoted as saying in Coin Telegraph amongst many other publications, cryptocurrencies like Bitcoin should play an important role in reforming and reviving the UK’s financial services sector after Brexit.
For the first time since the 2016 Brexit referendum, the UK economy has showed signs of contraction, driving speculation of a recession in Britain.
In addition, it also follows Bitcoin, the world’s largest cryptocurrency by market capitalisation, experiencing a remarkable bull run over the past few months, and as it currently eyes $12,000.
Indeed, last month, Bitcoin registered a 193 per cent year-to-date price run.
Brexit, and the ongoing uncertainty it has generated, has imposed unparalleled damage on Britain’s financial services sector, which makes up around 6.5 per cent of the UK’s overall GDP.
As such, firms across the sector have had to take precautionary measures to secure their interests. There has been a continual drain of investment, confidence, talent and activity away from UK financial services, which is likely to increase over the next few months, particularly if the UK leaves the EU without a deal.
London is the world’s biggest and most important financial hub. At least for the time being. That said, its dominance is diminishing as Brexit-Britain grapples with uncertainty.
Therefore, in order to reform and revive UK financial services post-Brexit, to my mind the answer, in the most part, lies with cryptocurrencies.
I believe cryptocurrencies could and should drastically help to change the fortunes of the UK’s beleaguered financial services industry for three main reasons.
First, post-Brexit, Britain will not be bound to the EU’s infamously slow and onerous bureaucracy. The country could quickly set its own rules and regulations and establish a pioneering, pro-business, well-regulated market.
This could place the country alongside other pro-crypto jurisdictions such as Switzerland and Japan, and also in front of many EU member states.
Second, digital, global and borderless cryptocurrencies are undoubtedly the future of money. This is evident by the increasing amount of retail and institutional investment into the growing sector. As such, Britain should focus on the future to be ahead of the game.
Third, the UK is already a flourishing global fintech and blockchain hub which should be capitalised on further.
The booming cryptocurrency market has already provided solid economic advantages to other major economies. The UK, post-Brexit, will be in a unique position to advance even further, and by advocating cryptocurrencies, it could reboot the country’s financial services sector.