According to the British politician who was Chancellor from 2016 to 2019 - Philip Hammond - digital assets could alleviate the post-Brexit financial crisis, which the UK is experiencing. If London doesn't take the cryptocurrency industry seriously, it risks being overtaken by its European competitors.
"We must move quickly and effectively"
In a recent interview with City AM, former Conservative Party member - Philip Hammond - said the UK should shift its focus from Brexit to digital currencies. In doing so, the kingdom could secure its financial status from bitcoin, and altcoins will become increasingly employed at the macroeconomic level:
“Personally I think the momentum is now unstoppable. We need to act quickly and effectively to secure London's position ”.
Hammond warned that ignoring the asset class is unwise as many European nations have begun to embrace them. He added that some of these competitors see cryptocurrencies as an opportunity to overtake the UK as a global financial services hub:
"If we don't look closely, we will find that some amazing people are ahead of us."
Speaking of "amazing" countries with a friendly stance on the cryptocurrency industry, the small British overseas territory of Gibraltar is worth mentioning.
It has a comprehensive regulatory framework, which has attracted many companies operating in the sector. One such example is the Chinese cryptocurrency giant - Huobi - which recently showed its intention to move its spot trading operations to Gibraltar.
The Bank of England is not a fan of cryptocurrencies
On the subject of regulation, Hammond regretted that the UK authorities neglected the cryptocurrency sector. He predicted that blockchain technology - the backbone of digital assets - would underpin a future trading system. Therefore, British bulldogs should take this matter more seriously:
“The regulators were heavily distracted. We need to act quickly enough to show that this technology is recognized and accepted by lawmakers and regulators in the UK ”.
The UK doesn't seem to provide the friendliest environment for cryptocurrencies as the nation's central bank - the Bank of England - is a big critic.
In May of this year, Andrew Bailey, the institute's governor, said that bitcoin and other digital currencies "have no intrinsic value" and people who invest in them should be extremely cautious.
Earlier this month, Jon Cunliffe, Deputy Governor of the Bank of England, reiterated the negative stance saying market volatility could begin to spill over into traditional financial markets.
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