Cryptocurrencies are expanding everywhere in the world. Different countries, different regions, but the same virtual currencies. This year will be important fro cryptocurrency enthusiasts because regulations will start to take shape. That’s one of the reasons why the United Kingdom Treasury Committee will examine the effect of cryptocurrencies on businesses and investors.
United Kingdom Analyses Virtual Currency Impact on the Economy
The Treasury Committee of the UK parliament is ready to launch an inquiry into virtual currencies and their effect on the economy. The information has been reported by the BBC today, February the 22nd.
The main intention of the Treasury Committee is to understand the risks and benefits of digital money. The MPs will cover the role of digital currencies in the whole United Kingdom, on consumers and businesses.
Nicky Morgan, chair of the committee said:
“People are becoming increasingly aware of cryptocurrencies such as Bitcoin, but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors. The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses and governments, including those relating to volatility, money launder, and cyber-crime.”
The House of Lords has previously recommended the exploration of Blockchain technology to use on the British Government. At the moment, there are several governments trying to implement blockchain technology to their dependencies. Blockchain technology is able to reduce bureaucratic processes and make services more efficient.
But governments are not the only entities using this technology. Businesses and enterprises are searching for experts in this area in order to improve their products and other services they may offer.
Bitcoin Boosted Japan and Can Boost London’s Economy
According to Kay Swinburne, a member of the European Parliament for Wales, said during an interview that London could keep relevant after Brexit by embracing Blockchain technology.
“For me, this whole distributed ledger technology, we have to embrace it. The UK post-Brexit: how does the City of London stay relevant? The City of London stays relevant by suddenly becoming the proponents of the new technologies and not just patching existing systems to make them work post-Brexit, actually leapfrogging,” she commented.
Japan, the fourth largest economy in the world, has received a GDP increase of 0.3% just because of cryptocurrency profits. Cryptocurrency traders have increased Japan’s GDP by taking profits after Bitcoin reaching $20,000 during the last December.
Cryptocurrencies are able to benefit United Kingdom’s economy, as well as the economy of any single country in the world. It does not mean that regulations shouldn’t take place, but the benefits of blockchain technology and cryptocurrencies are visible in the whole economy.
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