At a time when countries are in a race to determine who stays ahead in the global crypto race, can the UK fight and keep up with the US in the increasing crypto adoption?
The UK in the Global Crypto Race
Many countries currently want to embrace central bank digital currencies and even succeed in it. The latest member of this gang is London.
Interestingly, within a year, reports show that it has really hiked up. However, not everyone is experiencing this growth, and the UK might fall here.
A Potential Central Bank Currency in the UK
The fact that the UK is not ahead of other world superpowers in the crypto race does not mean it does nothing about it. There has been a joint task force launch that will explore a potential central bank digital currency.
It is important to note that each country must have a particular strategy to succeed in the central bank digital currency.
According to a statement made in a conference on Monday by Rishi Sunak, the Finance Minister of the UK, they will be launching a new task force between the bank of England and the Treasury. The expectations are that these two parties will eventually coordinate and work on a potential central bank digital currency.
Furthermore, there is another statement in which the bank of England talked about this kind of currency. It describes it as a new form of digital money that the Bank of England will issue. Moreover, households and businesses will be in a position to use this kind of currency too.
However, regarding the central bank digital currency, the government of the UK has not yet made a concrete decision. It is still unsure whether to introduce a digital currency or not. Until then, they will first have to explore the objectives, potential risks, and the opportunities it might bring along if it proceeds.
It is important to know that cryptocurrencies are spiking in value. Meme-inspired tokens like Dogecoin are not left behind either. This, therefore, is an indication that there is a lot of potential in the cryptocurrency market.
Is the US at a Better Place Than the UK?
The UK houses a strong TradFi industry and several stakeholders in the cryptocurrency space. Such individuals include Peter McCormack and Oliver von Landsberg-Sadie. However, it does not seem to top in the game. The US is far much better at crypto adoption than the UK.
Why is this so? You might wonder. First, in the US, there is a federalist system that brings about autonomy and a competitive system that allows the development of markets. This way, adopting crypto is way faster.
On the other hand, you cannot compare the inflation in the UK with that in the US. Unlike the US, it is tamer, a factor that might hinder the adoption of crypto.
Therefore, the UK’s government structure could hinder entrepreneurs who might want to venture into crypto. This implies that when it sets rules that are a bit friendly to cryptocurrency, it might as well get it right in the global crypto race.