The United Kingdom needs to establish a joined-up strategy across government, regulators, and the legal system in case it wants to become a global leader in the crypto industry, according to an Innovative Finance report.
In a paper that was published by the industry body with Shearman & Sterling for the House of Commons Treasury Committee inquiry into the crypto asset sector, Innovative Finance insists that the application of digital assets and digitalization in financial networks and services will create considerable, real-life value and benefits.
The paper stated:
“There is an opportunity for the UK to benefit from this economic and social value, both domestically and globally.”
Also, it stated that the nation’s position in global finance will be somewhat determined by its strategy and approach to the budding industry. In 2022, Singapore has overtaken the United Kingdom as the number two destination for investment in DLT and crypto-asset-based operators.
To fight back and guarantee its place at the top table, the nation needs to have a joined-up strategy across government, regulators, and the legal network that is alive to the possible benefits and risks of crypto technologies. It also offers clarity for businesses and consumers that interact with them, as highlighted in the paper.
There needs also to be a continued review of UK law and regulation to guarantee that it offers the basis for recognizing digital assets and digital transactions and an improvement in the responsiveness and services level of the UK’s watchdogs in their processing of applications for new businesses in the industry.
Independently, one visiting fellow at the London Stock Exchange and blockchain advisor at Accenture, Ousmène Jacques Mandeng, has called for the launch of a CBDC and the adequate issuance of blockchain-based gilts to support the competitiveness of the City of London.
“The bank introducing a wholesale CBDC and the Treasury announcing that a significant share of gilts will be issued on blockchain could be catalysts for the adoption of blockchain-based financial applications. It is the nudge the market needs since the benefits will go beyond the City.”
The Innovative Finance paper is available here.