Cryptocurrencies such as Bitcoin should play a significant role in reshaping and reinvigorating the UK鈥檚 financial services sector post-Brexit.
This is the bold assertion from the CEO and founder of one of the world鈥檚 largest independent financial advisory organisations.
The observation from deVere Group鈥檚 Nigel Green comes as Britain鈥檚 Brexit-weary economy has showed signs it is contracting for the first time since the referendum in 2016, fuelling speculation of a UK recession.
It also follows the world鈥檚 largest cryptocurrency by market cap enjoying an impressive bull run in recent months and as Bitcoin currently eyes $12,000.聽In June the world’s leading cryptocurrency聽recorded a 193% year-to-date price run.
Mr Green comments: 鈥淏rexit and the lingering uncertainty it has created has inflicted unprecedented damage on the UK鈥檚 financial services sector 鈥� which makes up about 6.5 per cent of Britain鈥檚 overall GDP.
鈥淐ompanies across the industry have had to take precautionary action to safeguard their interests. There鈥檚 been a steady drain of investment, confidence, talent and activity away from UK financial services 鈥� and this is only likely to intensify in the coming months and even more so should the UK leave with no deal.鈥�
He continues: 鈥淟ondon is 鈥� for the time being at least – the world鈥檚 largest and most important financial hub. But its dominance is fading as Brexit-Britain flounders in uncertainty.
鈥淗ow, then, to reshape and reinvigorate UK financial services in a post-Brexit era?
鈥淎 major part of the answer must be cryptocurrencies.鈥�
The deVere CEO explains: 鈥淚 believe cryptocurrencies could and should dramatically help change the fortunes of Britain鈥檚 beleaguered financial services industry for three key reasons.
鈥淔irst, once outside of the EU, the UK will not be beholden to the bloc鈥檚 notoriously slow and burdensome bureaucratic protocols. It could promptly establish its own rules and regulations and set-up an innovative, pro-business, well-regulated market. This could position it alongside other crypto-friendly jurisdictions such as Japan and Switzerland – and ahead of many EU member states.
鈥淪econd, cryptocurrencies 鈥� which are digital, global and borderless 鈥� are unquestionably the future of money.聽 This is noted by the growing amount of retail and institutional investment into the burgeoning sector. Whilst other jurisdictions focus on the current, the UK should set its sights on the future to be ahead of the game.
鈥淎nd third, the UK is already a thriving global fintech [financial technology] and blockchain [the tech on which cryptocurrencies run] hub.聽 This should be capitalised on further.鈥�
Mr Green concludes: 鈥淭he growing cryptocurrency market has already provided tangible economic benefits to other major economies.聽 Post-Brexit Britain will be uniquely placed to go even further and by embracing it, it could reboot the UK鈥檚 financial services sector.鈥�
