Cryptocurrencies could repair ‘unprecedented damage’ Brexit inflicted on UK financial services

Cryptocurrencies such as Bitcoin could play a significant role in reshaping the UK’s financial services sector post-Brexit, repairing the “unprecedented damage” inflicted on the UK as a result of the uncertainty, according to deVere CEO and founder Nigel Green.

The observation from Green comes as Britain’s “Brexit-weary economy” has displayed signs it is contracting for the first time since the referendum in 2016, fuelling speculation of a UK recession. Bitcoin is also approaching the $12,000 mark as it has enjoyed an impressive bull run in recent months. In June, the virtual currency recorded a 193 per cent year-to-date price run.

Green commented: “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 per cent of Britain’s overall GDP.

“Companies across the industry have had to take precautionary action to safeguard their interests. There’s been a steady drain of investment, confidence, talent and activity away from UK financial services – and this is only likely to intensify in the coming months and even more so should the UK leave with no deal.”

Green continued to that, at present, London is the world’s largest and most important financial hub. However, he added that the capital’s dominance is “fading” as Brexit-Britain “flounders in uncertainty”.

“How, then, to reshape and reinvigorate UK financial services in a post-Brexit era?” Green asked. “A major part of the answer must be cryptocurrencies.”

The deVere CEO explained: “I believe 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.”

Green concluded by highlighting the “tangible” economic benefits cryptocurrencies have had on other major economies, adding that post-Brexit Britain will be “uniquely placed to go even further”, rebooting the UK’s financial services sector.

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