Following Britain’s Brexit victory, the country is poised to take the lead in crypto-finance ahead of the EU.
A POLITICAL ANALYST claims that post-Brexit Britain will soon be at the forefront of crypto-finance.
Cryptocurrencies such as bitcoin are believed to be held by over two million adults in the United Kingdom.
The figure has risen dramatically in the last decade, thanks to apps like Coinbase and eToro that have made the world of cryptocurrency more accessible to average workers in recent years.
While many people have taken advantage of the craze, the Bank of England has warned that the rise of cryptocurrencies could pose a threat to the established financial system.
Officials there claim that as the currencies become more mainstream, more people will invest regardless of the risks.
Because of the volatile nature of crypto markets, a sharp drop in their value could have a cascading effect.
Some countries have outright banned crypto because they fear it will upset the status quo.
China, Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, and Bangladesh have all outright banned the use of cryptocurrency within their borders, with 42 more countries implying bans.
Despite this, many people believe that cryptocurrencies, in some form or another, will be around for a long time in an increasingly digital world.
Other governments may eventually welcome cryptocurrencies, according to some political analysts.
According to Wolfgang Münchau, a German political analyst writing in Euro Intelligence, the UK will lead the new crypto-finance sector.
He believes that, in the same way that the UK has become a leader in attracting investment for high-tech start-ups, it will pave the way for digital currencies.
“Payment services, financial services passporting, and open banking are all examples of this innovation,” Mr. Münchau wrote.
“I believe crypto-finance will be the next big investment sector.”
“This, too, will be primarily a UK story.
“Semiconductors and online commerce are two other sectors that are attracting investment.”
The continent had received over €870 billion (£726 billion) in cryptocurrency in the previous year by the end of 2021.
Central, Northern, and Western Europe (CNWE) accounted for 25% of all cryptocurrency activity globally.
In the CNWE region, the UK saw the most crypto trading, with around £121 billion.
France, Germany, the Netherlands, and Spain came in second and third, respectively.
While crypto translation volumes grew in Europe, they fell in East Asia, the previous crypto world capital.
Europe’s growth, according to Chainalysis, a blockchain data platform, has been largely.
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