The UK is estimated to become the worldwide leader in blockchain technologies and the crypto economy. This comes after Britain was concluded to have all the required resources, as well as industrial and government will, to become a global hub for the blockchain and cryptocurrency technology by 2022, according to the study developed by the Big Innovation Centre, DAG Global and Deep Knowledge Analysis.
The report held that the £500 million plus investments which have been placed into UK blockchain companies between 2017-18 and has concluded that Britain has the potential to become a world leader in the digital and crypto economy. Sean Kierman, Chief Executive of DAG explained that as the UK is a major global finance hub and recently a fintech leader as well, this increases the chances of the UK becoming the strongest position in cryptocurrency very soon. It is evident that the effects of the increased position of the UK stance in Blockchain will have a global effect.
Chief Executive of the Big Innovation Centre, Birgitte Anderson, stated, “blockchain has been recognised by the UK parliament as a very important yet disruptive technology as it shows commitment to support the accelerated development of digital technology via a variety of government initiatives”. Government recognition will strengthen the UK’s position to adopt a higher position within Blockchain and cryptocurrency as this will allow access to more research funding allowing the market to expand.
It is expected that the gap between traditional finance and the crypto economy will reduce and eventually disappear. Blockchain and the technology which is behind cryptocurrencies is increasingly used for applications beyond finance with the recent announcement of blockchain-powered loyalty programs which will persuade increased use and efficiency of blockchain. Meanwhile, a blockchain advertising solution in IBM demonstrates how blockchain can be used for marketing purposes and even efforts to see the technology integrated into facebook allowing such to flourish on social media which will increase its use rapidly.
Overall, the UK increasing their position in the blockchain and cryptocurrency sector will bring benefits to the British economy as operational costs are reduced, settlement time is shortened which reduces risk, new revenue opportunities are presented and capital costs are reduced significantly. Additionally, Blockchain will help us take control over privacy.