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The New Prime Minister’s Vision For Crypto And Digital Finance In The UK

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This week, a millennial with a graduate degree from Stanford University and a career as a Wall Street banker becomes the first Asian-American prime minister of the UK, making the UK a global hub for crypto and digital assets. I had a vision of becoming

If 42-year-old Rishi Sunak fails to deliver on “Digital Britain” and kickstart a stalled digital finance innovation agenda to drive tomorrow’s productivity, social diversity and inclusion, and economic growth, Who can?

Sunak seems the most fit leader to pull this off in the G7, and the City of London and the financial services sector have high hopes for a savior after six years of the government giving business the cold shoulder. Business is the best friend of governments in need of economic crisis, especially money, brains and friends.

Sunak was welcomed to 10 Downing Street this week during the most financially difficult time of a generation. With double-digit inflation, soaring energy costs and food costs rising by more than 15% a year in the UK, the economy is starting to plague people, and most people are pushing their mortgage rates down. He can’t afford to double.

After 44 tumultuous days in Liz Truss’ government, the pound plummeted after Prime Minister (Treasurer) Kwasi Kwarten delivered a £50bn unfunded tax cut, leaving Britain’s largest pension fund to buy government bonds (gold coins). ) threatened to become insolvent. Unexpected demands on price and liquidity. Quarten was fired and Truss resigned a few days later.

The ‘stability snack’ has brought relief to the market as the pound has recovered most of its losses. However, this stability may be short-term. Economists are predicting a recession in the UK as macro political and market conditions worsen, and austerity budgets may be good for the books but unlikely to be popular with voters. Hateful.

People want the economy to return to stability and put an end to the continuing deterioration in the quality of life for many in the UK. With the 2024 elections looming, Snak and his government are cutting their jobs.

Beating the hatch and keeping Good Ship UK stable is just one variable in this complex equation. With UK productivity growing at a snail’s pace of 0.5% per annum for over a decade, the country needs to reinvent itself for a digital future to boost productivity and drive greater growth .

The main reasons for the UK’s low productivity are low business investment, a weak management team and few commercial patents. Quote By the London School of Economics and the Resolution Foundation think tank.

Investment in the UK’s pinnacle of fintech has seen a staggering $9 billion decline in the first half of this year, already down 65% from last year. The dream that the City of London is a world leader in digital finance has a near-death experience and a need. IMMEDIATE REPAIR ATTENTION.

Global fintechs and banks are transforming the infrastructure of capital markets through digitization and decentralization. The UK will miss out on becoming a player in this new digital world and will remain a major financial center if it does not act now.

The Treasury Department’s new Treasury Secretary, Andrew Griffiths MP, made the first move this week by including crypto assets in the scope of regulated financial services in the Financial Services Bill, which is expected to pass in early 2023. This is a smart move. The UK has a latecomer advantage between the US and Europe and needs to be aligned and competitive in the crypto spot market and stablecoins.

Industry leaders have suggested that the government also focus on tokenizing the securities, commodities and property markets, which is a much bigger prize than just the cryptocurrency market. Opening up the listing market for private market digital securities, with the reform of the London Stock Exchange on the government agenda, is a game changer before tokenizing other markets.

The UK Legal Commission has submitted a proposal to amend the law regarding the legal status and ownership of digital assets, which is currently under public consultation. By treating digital assets as a new property class of ‘data objects’, owners and investors of digital assets are protected by common law in the UK, a feature of world law.

There are many demands following UK Financial Conduct Authority (FCA) regulatory reforms, especially the crypto registration scheme. Reform could be part of a larger, longer-term government agenda, but in the short-term, the FCA’s border-related cryptocurrencies and digital assets will require clear policymaker guidance and new regulation. It’s what you need to move regulators. board.

That digital smart contracts for securities, commodities, and assets exist on hybrid blockchain technology and not cryptocurrencies is something that regulators will have to agree on sooner or later. Many companies looking to issue traditional assets in smart contracts, rather than cryptocurrency companies, are accelerating the digitization of traditional asset classes to increase value for investors and, importantly, price discovery and market is about to significantly improve the liquidity of

The good news for governments is that it may not require a large amount of government funding to bring the city back to the center of the global financial system and harness digital finance to transform UK productivity. Industry does a lot of the funding and the heavy lifting. Governments are policy partners of industry and should have appropriate legislation in place.

With the UK exiting Europe, it is no longer bound by State Aid rules that prohibited the planning of tax subsidies for digital innovation, and adjusting future tax incentives to attract institutional investors will be the focus of tomorrow. It’s the real key to expanding your fundraising. digital uk.

Expectations are high for the talented young British prime minister. The industry is poised to launch the next wave of innovation in digital finance in support of the ‘Sunak Protocol’. The industry knows the UK government is listening, but wants to see action and will eventually use their capital and talent to vote.

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