Brexit – Can Cryptocurrency Rescue the British Economy?

    Brexit – Britain’s exit from the EU – holds a different fate for everyone, regardless of the side of the fence you are on. From a financial perspective, analysts have predicted interesting outcomes, especially for cryptocurrencies. Brexit will influence regulations around digital asset management and cryptocurrency values. Over 62% of financial analysts predict that Brexit will cause cryptocurrency prices to rise, which should improve the way the British trade and revitalise the economy – here’s how. 

    Blockchain technology will boom

    Around 46% of analysts are optimistic that the new Britain will embrace blockchain technology to a greater extent, leading to more widespread use. This will be a direct result of Britain adopting a more liberal stance on accepting the technology, paving the way for new innovations. Naturally, this could result in more individuals investing in cryptocurrencies. Very few analysts believe Britain would take a conservative stance towards to blockchain technology.

    Cryptocurrencies could hold the key to a stronger economic climate

    London has always been the primary hub for economics in Britain. The effects of Brexit have it quavering, however, the financial services sector will benefit from a boom in cryptocurrencies. The cryptocurrency market has already benefited a number of other economies, like Japan and Switzerland. This is because it is borderless, not hinged to any central banking systems, enabling easier trade across borders. 

    UK industries that will boom with the rise in cryptocurrencies

    With simplified trading, comes a boom in business. Cross-border trades are expected to benefit greatly, which can bring money into the country from outside, alongside numerous local businesses. Online endeavours, too, such as casino UK websites, are likely to prosper in a cryptocurrency age. Indeed, we can already see this happening. Although few casinos accept cryptocurrency payments directly, there are those such as Paddy Power that accept Neteller as a payment method. Neteller is compatible with Bitcoin, which users can convert and spend in the currencies the casino accepts, thus enabling people to play slots, blackjack, roulette or whichever casino game they prefer, by making deposits indirectly through cryptocurrencies.

    Cryptocurrency and what it means for the man on the street

    As mentioned, cryptocurrency, when used with widespread technology that facilitates a good level of user-friendliness, will give rise to the use of these currencies. That means Britain will likely see similar trends to those currently embraced in New Zealand. New Zealand has passed a motion which allows employees to get their salary in Bitcoin. It is purely for those who prefer this payment method – but it is hardly surprising that a number of employees are fully embracing the new liberal stance.

    Is Britain preparing for cryptocurrency acceptance?

    Crypto UK is an independent trade body that has formed in response to a boom in the use of and demand for cryptocurrencies in the UK. It occurred when seven different crypto companies came together to create a combined effort. They state that regulation is imminent, and would lead to new policies to assist those who wish to trade, safely. The group’s goal is to “improve industry standards and engage policymakers”.

    Former UK Chancellor of the Exchequer Philip Hammond made some interesting comments about the government’s stance on cryptocurrency. A statement revealed that the government at the time intended to build a Fin-tech bridge between the UK and Australia, using cryptocurrency. The idea behind it was to strengthen both economies while providing new Fin-tech startups with a better economic climate for such a launch. Little has been said in recent months about that task force, so its effectiveness remains to be seen.

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