UK Prime Minister Rishi Sunak’s victory was a victory for crypto
A former investment banker turned seasoned politician, Rishi Sunak has had an incredibly productive career in just a short period of time. Aged just 42, he has served as a Member of the UK Parliament, Chief Secretary to the Treasury and Chancellor of the Exchequer – and now begins his term as Prime Minister.
As the youngest prime minister to take office in Britain in more than 200 years, Sunak has something else in common with his millennial peers: He’s a crypto enthusiast. In fact, as a recent Bank of America survey found, “Younger investors are choosing to allocate significantly more of their portfolios to crypto” than their older counterparts. In addition, those in the 21-42 age group are “more likely to believe that crypto offers the greatest opportunities for growth” and allocate an average of 15% of their portfolios to crypto investments, compared to 2% invested by over-42s.
The difference, of course, is that Sunak isn’t just keeping his soft spot for cryptocurrencies to himself. Unlike many of his peers, he is actual able to advance the industry in completely new, exciting ways. He can propose legislation, issue regulations and push through new ideas. He could pave the way for the migration from Web2 to Web3 – which will largely be built on technologies such as cryptocurrencies, but will also include non-fungible tokens (NFTs), blockchain, artificial intelligence and the rise of the metaverse, among others – and potentially create a Web3 hub out of the UK in no time.
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Make no mistake: This is not pure speculation – he said so himself.
“It is my ambition to make the UK a global hub for crypto-asset technology,” Sunak said as Chancellor of the Exchequer, stressing the need to “ensure that firms can invest, innovate and scale up in this country.”
As Chancellor of the Exchequer under former Prime Minister Boris Johnson, the Stanford graduate pushed through several crypto-related initiatives as part of an overall agenda aimed at normalizing and promoting the UK crypto ecosystem.
Chancellor @Rishisunak have asked @RoyalMintUK to create an NFT to be issued by the summer.
This decision demonstrates the forward-looking approach we are determined to take towards crypto assets in the UK. pic.twitter.com/cd0tiailBK
— HM Treasury (@hmtreasury) 4 April 2022
In 2020, Sunak announced his intention to prioritize financial technology, such as central bank digital currencies (CBDCs) and stablecoins, to allow the country to keep up with the times, or, in his words, “ensure the UK financial industry is always at the forefront of technology and innovation .”
In 2021, he identified the need for ground-breaking reforms “to support the safe adoption of cryptoassets and stablecoins” and went so far as to suggest that the Bank of England investigate the possibility of a CBDC. Just this spring he ordered the Royal Mint to launch a government-backed NFT aimed at showcasing the 1,136-year-old institution’s “forward-looking approach”, and he introduced legislation to “see stablecoins recognized as a valid form of payment in the UK.”
He also – and perhaps most importantly – helped formulate the Financial Services and Markets Bill, which the country went ahead with this month. The proposed bill, which proposes “a range of measures to maintain and strengthen the UK’s position as a global leader in financial services,” is the first step, and a crucial step, towards greater clarity around technologies such as cryptocurrencies and blockchain and will allow their development move forward and their grip is strengthened.
Related: Biden’s anemic crypto framework offered nothing new
If we were to venture a guess at what the prime minister’s first steps might look like in the coming months, crypto regulation would be a good one, if not even secure, bet. “By regulating effectively,” Sunak said, “we can provide [the businesses of tomorrow] the confidence they need to think and invest long-term.”
On the heels of the European Parliament committee finally approving the much-discussed text of the Markets in Crypto-Assets framework, and the White House publishing what it described as the “first comprehensive framework for the responsible development of digital assets” seen in the UK. follow right behind would be a really great sign for the industry as a whole. By 2023, we could be looking at a very different global crypto landscape – one that is more advanced, more regulated, more widespread and more expansive. And that can always be positive.
We can look forward to seeing how the youngest Prime Minister in British history treats the “youngest” innovation of our time. I wish him the best of luck, bullish markets and a long journey ahead. Just kidding, Rishi.
Lars Seier Christensen is the founder and chairman of Concordium, a tier-1 blockchain.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
