The UK is experiencing a much faster growth rate than all other major countries when it comes to cryptocurrencies.
The UK has said it wants to become a major global cryptocurrency technology hub and first announced this in April 2022. So it would not be particularly surprising to see the UK outpacing the growth of other top cryptocurrency countries so far this year.
UK growing fastest
According to Altindex.com, first reported by the Cyprus-based Financial Mirror, the UK’s cryptocurrency sector “generated $1.9 billion in revenue this year.” This represents “a 137% year-on-year growth from $800 million in 2022.” . This figure is expected to increase to $3.77 billion by 2027.
More than a quarter of the UK population now uses or holds cryptocurrency, and more than 200 businesses accept cryptocurrency payments. Now the largest cryptocurrency economy in Europe, the UK appears on the surface to be fast-tracking cryptocurrencies, perhaps as a potential revenue generator post-Brexit.
Positive growth, but big backlash
All this positive cryptocurrency growth is great to see in the UK. However, with traditional banking empires having invested heavily in fiat money systems, it will be very interesting to see how the government handles the massive backlash from institutions such as the Bank of England and other interested financial institutions.
The UK’s regulatory watchdog, the Financial Conduct Authority (FCA), already oversees a very stringent compliance structure, and on the first day of the new cryptocurrency compliance regime, it issued more than 146 warnings to the public warning of illegal promotions.
Interest in cryptocurrency will grow further
In essence, cryptocurrencies could be considered a private currency for those invested in the traditional financial system, and would therefore be a competition for the pound, which has already suffered a massive decline in value.
As the UK’s economy worsens compared to most of Europe, the government will come under additional pressure to issue even more currency, which will cause the value of the pound to fall and citizens’ money to become worth less and less.
In this kind of environment, people will want to invest their money in real assets. Bitcoin will certainly be one of the main attractions when considering its store of value tag. Moreover, the broader cryptocurrency market may also be of interest as some digital assets here have risen well above inflation and beyond what banks or other financial companies can offer.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.