Aaron Ricadela is a director of strategic communications for Oracle.
Brexit is going to end soon. How will Fintech Companies fare in the UK post-Brexit? Is Brexit good for cryptocurrencies or bad for it?
Brexit has been on the front burner for most of the past two years. Theresa May has already resigned following her inability to make Brexit happen. Boris Johnson is facing the heat for trying to lead the UK into a “no-deal” scenario where there is no sort of agreement with the EU.
Fintech startups have been in the middle of the whole mess and have been trying to figure out how to swim in the murky waters that Brexit has brought. On one hand, the UK is by far the world’s largest financial center in many respects and the most respected. On the other hand, once Brexit occurs, the UK will be on its own and the EU’s common market will be difficult to access.
Cryptocurrency prices, however, seem to have been boosted by all the chaos currently in play. Bitcoin price is edging upwards and is providing insight into how cryptocurrencies and crypto startups are affected by Brexit.
Brexit is great for cryptocurrencies, however, for cryptocurrency startups, the story is a different matter entirely. The loss of the talents that are required in an innovative environment is already showing. These fears where expressed last month by Sarah Hall who is a Senior Fellow at the Changing Europe research group:
“If fintech businesses in the U.K. can’t access international individuals working in areas such as machine learning, artificial intelligence, and blockchain as easily after Brexit, this could cause a contraction in the sector because currently, up to a fifth of the skills used by the fin-tech sector in the U.K. have come from the EU.”
No Love Lost for Cryptocurrencies
While the UK may encourage fin-tech startups to do their thing, the position on cryptocurrencies is in the opposite direction. The UK’s financial services watchdog last month bashed Bitcoin and the altcoins saying that Bitcoin had no “intrinsic value”.
This is indicative of a close position to a cryptocurrency ban within the British Isles. While this may look bad for the UK, it might work out in its favor. If cryptocurrency at best become heavily regulated and at worst banned outrightly which is highly unlikely, keen interest in cryptocurrencies as a phenomenon will spur fresh adoption.
The Pound Takes a Big Hit
With all the recent chaos between Prime Minister Boris Johnson and the members of parliament, the pound has been sliding in response to lack of a concrete roadmap where Brexit is concerned. We all know that cryptocurrencies do quite well when such scenarios are in play.
Going by the current trend of events, the UK economy is going to go into a comatose state before it things will take off post-Brexit. Jobs will be lots and lots of perks are most certainly going to disappear.
Fintech startups may suffer but Cryptocurrencies are going to do quite well. Cryptocurrency startups will have their fair share of issues but will be in a better state than other fin-tech companies.
In essence, Brexit is coming hard and fast. Cryptocurrencies are going to gain big time.