Rishi Sunak becomes PM ‘good for crypto and fintech’

Cryptocurrency FinTech

The appointment of Rishi Sunak as Prime Minister is good news for cryptocurrency adoption and FinTech in general, the industry believes.

Sunak stepped down as chancellor this summer when he felt his approach to the economy was “fundamentally too different” from then-prime minister Boris Johnson.

A fiscal conservative, he believes in increasing productivity and empowering technology companies to raise living standards across the board. But his tenure in government was marked by crisis management as COVID-19 threatened to cause mass unemployment, leading to initiatives such as the furlough scheme that went against his core instincts.

As soon as anything close to normal service resumed, he and Johnson failed to see eye-to-eye, with the BBC’s economics editor Faisal Islam reporting that Sunak was keen to discuss the impact of inflation publicly, while No 10 preferred to borrow more and tax less.

After Johnson was removed from office, Sunak was seen as a credible successor – but a Conservative membership who saw him as disloyal chose Liz Truss. After a disastrous 44 days in office, Truss left and Sunak has now been installed after talks with Johnson, who considered an unlikely comeback.

During his time as Chancellor of the Exchequer under former Johnson, Sunak announced that he wanted to make the UK a “global hub for crypto”. He helped usher in the Financial Services and Markets Bill, currently moving through Parliament, seen as a global leader in the effort to regulate cryptocurrency and digital assets. The Royal Mint was even commissioned to create a collection of non-fungible tokens (NFTs).

“Rishi Sunak has always been vocal about his pro-crypto stance, especially CBDCs (central bank digital currencies),” said Pavel Matveev, CEO of UK and FCA-regulated crypto payments firm Wirex.

“In July this year, he pushed through a new law that would pave the way for everyday crypto payments, despite the Bank of England having fears about the stability of the technology. Back in April, Sunak set out his ambition that he wants the UK to be a “global hub” for crypto and technology, and that stablecoins should be accepted as a form of payment.

“To do that, this means he is likely to encourage investment and the growth of businesses related to the field. We are optimistic that we can achieve this in the UK – and look forward to seeing what the government can do for the crypto sector.”

Andrew Megson, chief executive of My Pension Expert, said: “An incredible amount of chaos has occurred in the six weeks since Rishi Sunak’s failed first bid to become prime minister. Now he has the chance to prove himself – in the biggest way possible – by putting out the fires lit during Truss’ 45-day reign of market crashes and embarrassing U-turns.

“Market stability will be a priority. Sunak’s first leadership campaign was led on a promise of fiscally conservative policies, which have already pleased markets and given the pound a lift. However, it is also crucial that the new Prime Minister focuses on immediate reassurances for Britons struggling to stay afloat amid a skyrocketing cost of living crisis Confirming his stance on key policies such as the triple lock, or benefit cuts, would be a step in the right direction.

“Sunak will be keen to get started and fulfill his previous promises of fiscal responsibility. However, he must balance this with appropriate support if he is to restore public confidence in their economic future, and indeed Tory economic policy. Only time will tell if this will be the case.”

‘Stark divide’ in UK’s regional tech sector could hold back growth

Blockchain technology to tackle counterfeiting

A new blockchain-powered technology that protects ownership and tackles the growing scourge of counterfeiting has been quickly adopted by businesses looking to protect themselves and their customers.

UK-based DNA – Database of Native Assets – is officially launching its technology solution this week.

It claims to create unique digital passports that prove authenticity and ownership of jewellery, collectibles, art, rarities and luxury goods. This information is then secured on the Kadena blockchain platform.

DNA is said to be built for mass adoption and users of all skill sets as a plug & play solution that facilitates a brand’s transition to Web3 without the need for complicated blockchain infrastructure.

This week, Sotheby’s announced the sale of a highly valuable Paraiba Tourmaline ring from Austrian jeweler Schullin that was verified with a DNA native asset.

The handcrafted platinum ring features a 49.88 carat natural oval-cut Paraiba Tourmaline and 60 baguette-cut diamonds and is worth between £140,000-£180,000.

“We are very impressed with what DNA has created and the solution they offer – it made sense to use the technology for the upcoming Sotheby’s sale, which has a unique piece,” said Lukas Schullin, manager of Schullin Wien.

“We have explored a number of digital verification solutions in the past, but none work as efficiently and seamlessly as this one.

“For us, simplicity and ease of use is what sets it apart. The fact that it can be used by anyone makes it the perfect solution for all our customers, including those who may not be particularly tech-savvy.

“It offers the power and security of the blockchain without all the headaches of having cryptocurrency and a digital wallet.”

In Crypto: Disney Launches First ‘Metaverse’

Cryptocurrency shorts

UpsideDAO has raised $5 million to invest in Web3 projects. The community fund, which uses a blockchain voting mechanism, will invest up to $100,000 in projects that receive 75% approval from members.

Synota has raised $3 million in a seed round led by Ego Death Capital. The startup, which wants to bring energy payments to Bitcoin’s Lightning Network, was also backed by Trammell Venture Partners, Rev1 Ventures, Hivemind VC, Bitcoiner Ventures and Recursive Capital.

The Tel Aviv Stock Exchange has created a blockchain-based platform to expand trading services for cryptocurrencies and other digital assets.

Sheffield-based designer and 3D NFT artist Amy Kilner has launched a design house called ‘Skyhi Creative’. Claiming interest from Fatboy Slim and tech investor Steven Bartlett, it aims to collaborate with talent across graphic design, motion design, NFT art and 3D design.

Stage Inc., creator of the metaverse construction platform Stageverse, has launched an AI-generated fashion design tool for avatars. When people enter a message in Avatar Fashion Studio – e.g. psychedelic, smiley, pink, blue – the Stable Diffusion AI text-to-image generator creates patterns inspired by these words. These can then be worn on the avatar’s clothing, carried in the world, shared with friends, and potentially traded as NFTs.

Crypto prices

The total market capitalization of the 21,400 coins is $932 billion at the time of writing (07:00 UK), up 0.1% in the last 24 hours.

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