Cryptocurrency set to explode in UK? Rishi Sunak’s Britcoin masterplan given green light
Cryptocurrencies like Bitcoin are 'apolitical' says financial expert
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While plans for a Britcoin currency remain in their infancy, experts have claimed any future digital currency could encourage investment in the UK. Speaking to Express.co.uk, Tim Crook, head of tax at Gherson Solicitors, and Thomas Cattee, head of white-collar crime at Gherson Solicitors claimed a UK-based cyrptocurrency could provide a new avenue for foreign investment for Britain. They said: “We suppose there could be a direct benefit in let’s say, for example, if the UK has its own cryptocurrency that can be used to invest in the UK.
“Then that may encourage people from certain countries outside the US or the UK to invest in the UK, if they, for whatever reason, want to make their investment in some form of cryptocurrency rather than traditional cash or Sterling.
“That could be sort of an indirect benefit, we suppose to encourage investments in the UK.”
The two, however, did admit any scenario may be “a long way from” financial and business transactions using cyptocurrencies in the UK.
The pair also warned against placing any transaction tax on cryptocurrency as it may dissuade investment from the UK.
They added: “We don’t really see why cryptocurrency should be singled out any more than any other investment.
“It’s quite likely that there’ll be more tax increases in the coming years, we would imagine to pay for Covid.
“The Government’s obviously just announced the increases in National Insurance, which is, you know, a start.
“In the budget in April, they announced the increases in corporation tax that are going to kick in a few years’ time.
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“We wouldn’t be surprised if capital gains tax rates are increased at some stage.
“At the moment, there’s a big discrepancy between capital gains tax rates which are between 10 or 20 percent and the income tax rate, which can be as high as 45 percent. “
The Chancellor has been called to introduce a digital currency ahead of the EU now the UK is free from the shackles of the bloc.
Some have called on the Chancellor to introduce a Central Bank Digital Currency (CBDC).
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A CBDC would be centralised and controlled by the Bank of England while cryptocurrencies are created using blockchain.
China is leading the way in creating a CBDC and began undergoing public testing for it in April.
The Government has also launched a consultation process or creating a UK CBDC.
Speaking previously to Express.co.uk, Daniel Hodson, Chairman of the CityUnited Project warned the UK must not fall behind in creating a CBDC.
He said: “Getting an early Sterling Central Bank Digital Currency launched, initially for City transactions, could provide a massive first Western mover advantage for Britain.
“China is about to do it, it’s on its way in the EU and US, and we’ve got the know-how, the resources, the people and the leadership skills but we don’t have the will at the moment.
“Forget about a retail – digital pound in your pocket – version; that can and should come later.
“The earliest possible wholesale (ie City) based Sterling CBDC could provide enhanced UK geopolitical soft power, greatly enhance our national security and provide immediate protection for City markets.”
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