With all of the news being so spooky lately (Halloween reference), let’s tone it down and look at something that has been mostly overlooked. Therefore, we are going to take a look at the UK and what could potentially happen if a no deal Brexit occurs.
Nothing should be considered investment or financial advice. Enjoy the ride.
UK No Deal Brexit Might be Good for Bitcoin
Although this may seem like a stretch, hear me out. Due to the looming no deal Brexit that has continuously been delayed time after time, there will be a hard stop eventually. The UK has used up too many “Get out of jail free” cards and soon the EU will have no choice but to force the removal of the UK from the EU.
Currently, the UK has been experiencing a drop in their annual expected GDP growth. So much that from Q4 2017 to Q4 2018, the business development and investment throughout the region was 4% lower than expected. That may not sound like much, but with the world in such a mature stage of the market, any deviation from growth could be disastrous in terms of long-term effects.
Coupled with this, there is huge uncertainty for investors entering the market region and even more uncertainty for companies doing international trade. This is greatly impacting the UK long-term and once a no deal Brexit happens, the short-term impact will be much more severe.
UK Likes Blockchain and Crypto
Granted this is the current situation, the UK needs to find ways to boost their economy and drive growth in new industries. There is no industry currently better than this as the Blockchain industry.
The UK already has stable regulation and clear asset classification that even goes into case studies that the Financial Conduct Authority has looked into. In addition, the Bank of England, Financial Conduct Authority, and the HM Treasury, have all teamed up to create a blockchain and crypto task force that has been active for years. They are constantly gathering data, perspective, and diving into the different ideologies surrounding the blockchain space.
On top of this, the current governor of the Bank of England even recently came out and promoted Bitcoin as the future reserve currency that could potentially displace the dollar. Although it will not completely displace fiat currency, Bitcoin could offer countries an alternative asset to hold in reserve that is not directly correlated with most of the normal global market cycles.
UK Should Promote Blockchain
In short, the UK should look to boost their economy by opening up the flood gates to the blockchain industry. There are multiple ways to drive the growth to the country. Here are just some ideas:
- Decreases taxes and create barrier for tax free trade under certain limits to promote spending
- Pass legislation granting licenses for crypto exchanges and banks
- Approve derivative funds and indexes
- Create a nation wide crypto bank to support the new ecosystem that companies can partner with
- Promote a top ten exchange to move to the UK and offer them tax breaks and incentives to help companies
- Launch a stable coin through the BoE
These are just some ideas, but starting anywhere would help. By boosting this industry, the UK could potentially start to grow their GDP and business investments back to where they need to be.