Cryptocurrencies such as Bitcoin and Ethereum could well play a significant role in reshaping and reinvigorating the UK’s financial services sector post-Brexit, according to one industry expert.
In a note to clients, Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory organisations said Bitcoin – the world’s largest cryptocurrency by market cap currently enjoying an impressive bull run in recent months – could offer Brexit Britain’s financial sector a path to salvation.
In June, the world's leading cryptocurrency recorded a 193% year-to-date price run. Green noted: “Brexit and the lingering uncertainty it has created has inflicted unprecedented damage on the UK’s financial services sector – which makes up about 6.5% of Britain’s overall GDP.
“London is – for the time being at least – the world’s largest and most important financial hub. But its dominance is fading as Brexit-Britain flounders in uncertainty. How, then, to reshape and reinvigorate UK financial services in a post-Brexit era? A major part of the answer must be cryptocurrencies.”
The deVere CEO opined that cryptocurrencies could and should dramatically help change the fortunes of Britain’s beleaguered financial services industry for three key reasons.
“First, once outside of the EU, the UK will not be beholden to the bloc’s 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.
“Second, cryptocurrencies – which are digital, global and borderless – are unquestionably the future of money. 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.
“And third, the UK is already a thriving global fintech [financial technology] and blockchain [the tech on which cryptocurrencies run] hub. This should be capitalised on further.”
The growing cryptocurrency market has already provided tangible economic benefits to other major economies. Post-Brexit Britain will be uniquely placed to go even further and by embracing it, it could reboot the UK’s financial services sector, Green concluded.
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