Many different external factors can influence financial markets. This also applies to cryptocurrencies, which are already volatile by nature. The looming Brexit may, in contrary to popular belief, have a positive impact on cryptocurrency in the UK. DSX chief executive Mike Romanov envisions a rather bright future for Bitcoin.
The Brexit Effect on Bitcoin
Financial turmoil has been brewing for several years now. The United Kingdom will exit the European Union once and for all. A fair bit of market volatility appears to be the logical outcome of this major shake-up. Financial markets may very well face some temporary setbacks, at least in both of the affected regions.
Cryptocurrencies, on the other hand, may fare a lot better. Mike Romanov, chief executive of DSX, is confident that will be the case. Britain removing itself from the grasp of the EU can have a positive effect on Bitcoin. A new financial era will dawn upon the region. That leaves room for investors and market makers to venture in any direction they see fit.
Romanov argues Bitcoin tends to thrive during financial turmoil. Since it is not subject to traditional rules, it can achieve a dominant position in the years to come. While nothing has been set in stone, a set of regulatory guidelines will need to be developed. Those rules can be very different from what the EU is working on at this time.
Bank of England Might not Agree
The regulation of Bitcoin is determined by many different entities. England’s central bank is not the biggest proponent of cryptocurrency. The Brexit may give the nation a chance to pursue its national digital currency plans after all. That idea was put on ice indefinitely several months ago, but with more breathing room outside of the EU’s purview, that situation may come to change.
If Britain pursues cryptocurrencies in a positive manner, Bitcoin will get a healthy boost. The world’s leading cryptocurrency remains on shaky legs in the price department. There is also a growing interest by crypto firms willing to explore the UK market. Coinbase is the biggest example in this regard. The company is part of the UK’s Faster Payments scheme to bring cryptocurrency to the masses.
As Bitcoin is now 10 years old, the next stage in its evolution becomes more important. Gaining more traction remains very difficult, despite the global and government-free nature of this payment method. The Brexit can set things in motion, although things may turn out for the worse at the same time. Political events like these will cause some big shifts, although the impact on Bitcoin remains unclear.
How do you think Brexit will affect Bitcoin and other cryptocurrencies in the UK? Let us know in the comments.
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