The Role of Cryptocurrencies in the UK Can Explode at the End of 2020

The United Kingdom was hit by a number of major turmoils in this decade. Yet, the nation remains one of the richest, most technologically advanced, leading countries in the world. It is a member of the G7 and has closer ties with the United States than any other nation.

However, the 2016 Brexit referendum still ended with a surprising result as 52% of Britons voted to leave the European Union, ending 43 years of membership. The global reaction to the result was quite fast as British corporations started to shrink on markets around the world while Pound plunged significantly. However, the process of leaving the world’s most powerful union is not as easy as many imagined it would be. The majority of Britons were certain that voting to leave meant an immediate action taken by the government, simply suspending the membership.

The Brexit negotiations started after the referendum with then Prime Minister Theresa MAY in charge. The negotiations were happening primarily in Brussels as the EU officials refused to compromise on their terms of the agreement. Theresa May soon presented the Chequers plan, a white paper on the future relations of the United Kingdom and the European Union. Despite the government’s best efforts, the strong labour opposition did not support the plan which then failed to pass in the House of Commons three times. The new resident of the number 10, the former conservative mayor of London Boris JOHNSON, managed to draft a more acceptable deal, finally coming to the common ground with Brussels. With that, the United Kingdom entered the transition period on January 31st and shall leave the union on the 31st of December 2020.

The consequences

Despite the agreed deal, Brexit will have an unprecedented impact on the British economy. Major banks and other corporations headquartered in London are already looking for new locations in Dublin, Paris and Frankfurt. An estimated £900 billion of London finance has already been moved to the European Union due to Brexit. Such figures fear many that the British capital will soon lose its status as the global hub for finance and commerce.

Moreover, the United Kingdom, along with the rest of the world was recently hit by a novel coronavirus outbreak. With over 350,000 affected around the world, nations across the globe are implementing unprecedented measures in an effort to contain or delay the spread. The British government is already implementing widely criticized measures, such as the shield, asking roughly 1,5 million people in the risk group to self-isolate for 3 months.

The economic impact of the recent events

The British economy is in the middle of a turmoil, right at the edge of the economic downfall. Challenges that arose for the nation are hard to overcome and to succeed, the government will have to take effective and innovative measures. The first and the most important goal for Britain is to create good soil for new and already-existing businesses in the post-Brexit nation.

One of the easiest, yet effective steps is to support wider crypto adoption across the country. Bitcoin is already widely used in the United Kingdom but the top UK Forex brokers suggest taking it to new heights. The thing is that Bitcoin is bureaucracy-free and decentralized which is crucial for UK businesses. It could offer convenient, safe and fast services for thousands of London-based companies that are now considering moving their offices abroad. Britain has been forecasted to be one of the leading nations in blockchain technology in the past. However, as the Brexit negotiators struggled for years, many crypto businesses that were aiming to move to Britain found new homes in welcoming nations such as Japan and Switzerland.

The nation now needs to introduce more innovative ideas about the future of business in post-Brexit, as well as post-coronavirus-crisis Britain. It will likely do so. Many at number 10, as well as the House of Commons are realizing the obvious benefits of crypto adoption. No one knows when exactly, but the legislation draft on the matter is most certainly expected in the nearest future.

Soon, but not before the coronavirus has ended. The global outbreak will cost the British economy billions in the short run and even more in a longer perspective. London investors are panicking as capita’s stock exchange and key indexes keep falling. In the meantime, Bitcoin emerged as the new safe-haven asset for panicked investors around the world, including in the UK. Its decentralized character prevents major price swings caused by external factors. As a result, many across Britain are turning towards Bitcoin in an attempt to save their capital. Analysts of the Bank of England already claim that private developments of cryptocurrencies could be of great help in producing the CBDC.

Bitcoin will likely become a major subject of interest at the end of 2020 in the United Kingdom. With panicked investors, as well as the general public buying enormous numbers of bitcoin and the expected legislative changes in the nearest future, 2021 will likely be the year of cryptos in Britain.

Image courtesy of Ethereum World News