Ex European chancellor advocates for crypto for financial competitiveness

2021-12-3 19:45

Philip Hammond, a British politician and a former Chancellor of the Exchequer between 2016 and 2019, has announced that digital assets can be used to lessen the effects of post-Brexit.

The UK is currently passing through a tough post-Brexit period, and according to Hammond, the UK needs to adopt cryptocurrencies to ensure that it is not surpassed by its European rivals.

The UK should focus on crypto

During an interview with City A.M., Hammond stated that the UK should turn its focus towards digital currencies after the effects of Brexit. He stated that if the UK did this, it could achieve a strong financial status, as cryptocurrencies are gaining a high level of adoption at a macroeconomic level.

“I personally think the momentum is now unstoppable. We need to move quickly and effectively to secure London’s position.”

Hammond also stated that it was not a wise decision to ignore cryptocurrencies as an asset class, stating that some competing economies were considering using cryptocurrencies to surpass the UK as a global financial services hub.

One of the small European countries making great strides in crypto adoption is Gibraltar. Gibraltar has a clear crypto regulatory framework that has attracted many players in the sector. Huobi, one of the leading exchange platforms, is shifting its spot trading business to Gibraltar.

Hammond also expressed concern that the UK regulators were not keen on the crypto sector. He noted that blockchain technology could play a major role in the future of financial systems.

He, therefore, stated that regulators needed to act with speed to recognize blockchain technology and ensure that this technology will be endorsed by legislators and regulators in the UK.

Bank of England does not support crypto

The UK cannot be classified as one of the friendly crypto environments in the UK. The governor of the Bank of England, Andrew Bailey, is one of the strongest critics of cryptocurrencies in the UK.

Last month, Bailey stated that it was highly risky for El Salvador to endorse Bitcoin as legal tender. He stated that the use of Bitcoin in El Salvador was a great concern. Jon Cunliffe, the Deputy Governor of the Bank of England, has also argued that the volatility of cryptocurrencies could affect the traditional financial markets.

The post Ex European chancellor advocates for crypto for financial competitiveness appeared first on Invezz.

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