Rishi Sunak and Future of Cryptocurrency
Rishi Sunak's victory as prime minister of the UK was a win for the cryptocurrency industry
Rishi Sunak, a former investment banking executive turned smart politician, has achieved an incredibly successful career in a short duration. At the age of 42, he has already served the roles of chancellor of the exchequer, chief secretary to the treasury, and representative of the United Kingdom’s Parliament. Now, he is going to begin his position as prime minister.
As the United Kingdom’s youngest Prime Minister, after more than 200 years, Sunak shares a common interest with his modern-day contemporaries: a love of cryptocurrency. A recent survey by Bank of America found that younger investors are planning to put much more of their funding into cryptocurrency than their older counterparts. Also, individuals between the ages of 21 and 42 are more likely to think crypto offers the best growth potential and put 15% of their investments into crypto funding, while people over the age of 42 only add 2%.
Sunak, however, needs to keep his interest in cryptocurrency to himself. In comparison to his peers, he has the potential to revolutionise the industry in exciting and new ways. He has the authority to propose legislation, make regulations, and implement innovative ideas. He can lay the foundation for the transformation from Web2 to Web3. It will primarily be developed on technologies such as cryptocurrencies. But it will also include technologies such as NFTs, blockchain, AI, the metaverse introduction, and many others. He also has the potential to turn the United Kingdom into a Web3 hub promptly and effectively.
He stated clearly that this is not a simple matter of speculation.
As the chancellor of the exchequer, Sunak has stated his goal of making the United Kingdom a global destination for crypto-asset technology, promoting the need to ensure enterprises can invest, develop, and accelerate in this country.
The Stanford graduate implemented various crypto-related projects as finance minister under former Prime Minister Boris Johnson to regulate and promote the UK crypto industry.
In 2020, Sunak declared his intention to promote technology platforms, like central bank digital currency (CBDC) and stablecoins, to ensure that the UK financial services sector is leading in technology and innovation.
In 2021, he emphasised the need for innovative reforms to assist the secure adoption of crypto-assets and stablecoins. He also suggested that the Bank of England investigate the potential of a CBDC. In the spring of this year, he instructed the Royal Mint to develop a government-backed NFT to demonstrate the institution’s “forward-looking orientation.” he introduced regulations to accept stablecoins as a viable payment option in the United Kingdom.
He also helped draft the Financial Services and Markets Bill that the country managed to pass this month. This may have been the most important thing he ever did. The proposed bill suggests a range of policies to maintain and improve the UK’s position as a global innovator in financial services. It is the first and crucial step toward better transparency around technologies such as cryptocurrencies and blockchain. It would make their development advance and their influence to develop.
Crypto legislation is a reasonable first step for the prime minister in the coming months. We can infuse in [upcoming businesses] the willingness to plan and invest for the long term if we regulate effectively,” Sunak stated.
European Parliament Approved Crypto-Assets Strategy
After the European Parliament Committee approved the Platforms in Crypto-Assets strategy and the White House published the “first-ever comprehensive system for the development of digital assets,” the UK adopting the following would be a positive sign for the industry. By 2023, the world of cryptocurrencies could look very different. It could be more advanced, controlled, widespread, and larger. And that can always be a good thing.
We may look forward to watching how the youngest Prime Minister manages the most youthful innovation in the history of the United Kingdom. Rishi wishes that he has a prosperous journey ahead of him, along with good luck in the marketplaces.