A new report claims that the United Kingdom is poised to become a leader in the blockchain technology and cryptocurrency economies.
An article published on the Bitcoinist on 16 July 2018
By Adam James
‘THE HUGE IMPACT IT UNDOUBTEDLY WILL HAVE IN BRITAIN AND GLOBALLY’
The conclusion comes from an analysis conducted by the Big Innovation Centre, DAG Global, and Deep Knowledge Analytics — as well as the all-party parliamentary group on blockchain — which has reportedly found that Britain possesses all of the essential resources needed to succeed in the emerging space.
As noted by The Guardian, the report also claims that the UK possesses the industrial and governmental will required to push the nation to the forefront by 2022. The £500m-plus worth of investments in UK blockchain companies made over the past two years was used to justify this claim.
Sean Kiernan, the chief executive of DAG Global, believes the UK’s traditional financial system and cryptocurrency economy are primed to integrate, stating:
The UK is a major global financial hub and in recent years has become a fintech leader as well. At the same time, it is starting to demonstrate significant potential to become a leader in blockchain technologies and the crypto economy. The gap between the two worlds of traditional finance and crypto economy remains, but in the coming years we can expect this to lessen and eventually disappear.
Likewise, Birgitte Andersen, chief executive of the Big Innovation Centre, stated:
Blockchain has been recognised by the UK parliament as a very important and disruptive technology, and it has shown commitment to support the accelerated development of the digital economy via a variety of government initiatives. We are still at the early stages of the blockchain industry’s development and the huge impact it undoubtedly will have in Britain and globally.
BOE: BEARS OF ENGLAND
Compared to many of its international neighbors and competitors, England hasn’t been historically bullish on cryptocurrencies.
Bank of England Governor Mark Carney has long been bearish in regards to Bitcoin and its cryptocurrency brethren, having claimed Bitcoin has failed as both a viable currency and as a store of value earlier this year. He also lampooned Bitcoin and other cryptocurrencies in a speech to Bloomberg, stating:
The short answer is: they’re failing. Cryptocurrencies are poor stores of value […] This extreme volatility reflects that the cryptocurrencies have neither intrinsic value nor external backing.
Bank of England Deputy Governor Sam Woods, meanwhile, claimed cryptocurrencies post “reputational risks” late last month, stating:
In their short history, crypto-assets have exhibited high price volatility and relative illiquidity. Crypto-assets also raise concerns related to misconduct and market integrity. Many appear vulnerable to fraud and manipulation, as well as money-laundering and terrorist financing risks.
While the Bank of England’s opinions regarding Bitcoin and cryptocurrencies are clear, it remains to be seen whether or not UK legislators’ and regulators’ approach the blockchain and cryptocurrency economies will push the nation to the forefront of the space.