Bitcoinist.com reports on a new study conducted by the Big Innovation Centre, DAG Global and Deep Knowledge Analytics which concludes that Britain is the most likely place in which blockchain will see success. The report, which also claims that the U.K. has industrial and governmental appetite for new blockchain projects, suggests that the U.K. could be at the forefront globally by 2022. With more than £500 million in blockchain-related investments made in the U.K. markets in the past two years, it's not hard to imagine this being the case.
DAG Global CEO Sean Kiernan believes that the traditional financial world of the U.K. is primed to integrate with the digital currency space. He suggests that "the U.K. is a major global financial hub and in recent years has become a fintech leader as well. At the same time, it is starting to demonstrate significant potential to become a leader in blockchain technologies and the crypto economy. The gap between the two worlds of traditional finance and crypto economy remains, but in the coming years we can expect this to lessen and eventually disappear."
Big Innovation Centre CEO Birgitte Andersen agrees, saying that "we are still at the early stages of the blockchain industry's development and the huge impact it undoubtedly will have in Britain and globally."
Bank of England Remains Reluctant
For the time being, the Bank of England (BOE) has remained skeptical of digital currencies. BOE Governor Mark Carney criticized bitcoin and other digital currencies, saying bitcoin has failed as a viable currency and as a store of value. Carney described cryptocurrencies as "failing," adding that digital tokens' "extreme volatility reflects that the cryptocurrencies have neither intrinsic value nor external backing."
BOE Deputy Governor Sam Woods echoed this sentiment last month, suggesting that "crypto-assets have exhibited high price volatility and relative illiquidity ... many appear vulnerable to fraud and manipulation, as well as money-laundering and terrorist financing risks."
In order for the study above to come to pass, regulators' opinions on digital currencies will likely have to change. Whether this will happen at all and, more specifically, within the timeframe of just a few years, remains to be seen.
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.