With news of the Turkish Lira seemingly hot, talks of how Bitcoin could rescue the countries economy are sprawled across headlines at present, leading to the opening of many debates surrounding Bitcoin as a rescue method for a number of other future and potential financial crises. We have recently seen discussions about Bitcoin being used in a USD crash and now, we are seeing reports surrounding the use of Bitcoin in a post-Brexit crash of GBP, a worry on the minds of many living on the island.
Whilst a crash of GBP is not guaranteed, many in Britain do believe that the looming withdrawal of Britain from the EU will cause the value of the pound sterling to plummet, Bitcoin could hold an attractive rescue plan for British citizens in this instance, according to one FinTech expert.
According to BusinessCloud, Daniel Daychopan, the CEO of FinTech firm Plutus has spoken out about Bitcoin, discussing how mainstream adoption will be important for the progression of the currency and that importantly, it could potentially have a big impact during Brexit too. Daychopan says:
“Currencies like the Pound and the Euro are interdependent and struggle in the face of global instability, while cryptocurrencies are decentralised and present a viable and stable alternative for businesses and consumers.”
“National currencies are reliant on people’s faith in governments and the global financial system. There’s nothing inherently stable about them. In economies that aren’t stable, we’re already seeing digital economies developing and thriving. Cryptocurrencies are based on secure, reliable technology, and are decentralised, which makes them an excellent tool to weather a financial storm.”
A financial storm could be the direct result of Brexit, according to Daychopan and that within this instance, developing cryptocurrencies like Bitcoin will come to the fore, as a result of their decentralised nature.
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It’s difficult to know exactly what sort of role Bitcoin and cryptocurrencies will play during Brexit and a lot of it will depend on how GBP reacts to withdrawal. If the authorities reduce the impact to the British economy, Bitcoin probably won’t be much use other than as an investment, however, if GBP collapses, we’re looking at a totally new use value for Bitcoin in Britain, in the same way that Bitcoin could still begin to offer solace to those in Turkey at the moment.