Post-Brexit, and freeing itself from the shackles of Europe, the London financial sector needs to innovate. What better way than to become a financial hub for Cryptocurrencies, thereby boosting London’s position as a leader in global finance.
In an article for The Conversation, Finance expert, Professor David McMillan, remarked that Cryptocurrencies could boost London’s status as a financial hub. He said:
“No longer having to coordinate and agree with 27 EU countries should enable the UK to be more nimble... which could be a big advantage in attempting to corner emerging areas such as green investment and fintech.
This could include developing and regulating new financial products that allow investors to positively engage with climate change finance and cryptocurrencies.”
It is thought that London already dominates almost half of global currency trading. Even though Amsterdam recently overtook London as the main European market centre, when more shares were traded there last month, London still arguably retains the best currency trading expertise.
Professor McMillan also stated:
“One major City segment unaffected by Brexit is currency trading.
“While shares and bonds usually trade in the market where they are issued, currency trading takes place globally – mostly involving US dollar pairs, followed by pairs involving the euro and yen.
“The UK has 43 percent of the global forex market, and this has increased by six percentage points in three years.
“In forex, London has several important advantages. The location and timezone are a midpoint between the US and Asia. It has scale in having such a significant number of international banks in one city, plus the network of supporting services.
“By comparison, EU expertise is scattered among centres such as Amsterdam, Frankfurt and Dublin. London also has the infrastructure required for state-of-the-art high-frequency trading, not least the transatlantic cabling landing stations and data centres.”
The City of London remains a bastion of financial power, with its tentacles reaching across the world to every country and their banks and financial institutions. However, money does go to innovation, and Bitcoin and Cryptocurrencies are certainly seen as cutting edge in that respect.
With the UK striving to reach out beyond Europe for a successful independence, could a foray into the world of crypto possibly be an opportunity to get ahead?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.