The appointment of Rishi Sunak as the new UK Prime Minister could benefit the UK’s booming crypto industry.
Rishi Sunak will become the next Prime Minister of the United Kingdom.
The new exploded On Monday, rival candidates Penny Mordaunt and former Prime Minister Boris Johnson dropped out of the Conservative Party leadership election, making Sunak the de facto winner.
After the resignation of the previous prime minister, Liz Truss, on October 20, the ruling Conservative Party began the process of electing a new leader and a new prime minister. Liz Truss, who took over from Boris Johnson on September 5, was pressured to step down after just 44 days in office. His projects ofmini budgeteconomic tax relief, which provided significant tax breaks for high earners, drew strong criticism from the general public and members of his own cabinet.
Rishi Sunak will inherit the post of Prime Minister of the United Kingdom in turbulent times. Throughout 2022, rising inflation has challenged the global economy. In the United Kingdom, the consumer price index rose by 10.1% year on year in September, returning to the peaks reached in July and indicating that inflation should remain high for a long time. The energy supply problems caused by the invasion of Ukraine by the Russia only exacerbated the UK’s economic woes, leading to a further 80% rise in energy bills at the start of October.
It remains unclear how Rishi Sunak will handle the UK’s pressing economic problems. The new prime minister has yet to form a cabinet or present policy plans to the general public. However, while Sunak’s economic strategy is still an unknown, his appointment could mark the continuation of several pro-crypto policy decisions made during his tenure as Chancellor of the Exchequer between 2020 and 2022.
Rishi Sunak seems to have a positive view of crypto, blockchain, and distributed ledger technologies.
While acting as Chancellor of the Exchequer in April 2021, Rishi Sunak proposed that HM Treasury and the Bank of England set up a task force to explore the creation of a central bank digital currency. The CBDC, as they are more commonly known, are digital currencies issued by a central bank rather than a commercial bank. They are generally assumed to use blockchain technology to verify transactions between parties, much like networks Bitcoin or Ethereum.
Exploring a CBDC aligns with the Treasury’s aim to help fintech businesses grow and ensure the UK remains at the forefront of the digitalisation of finance. To this end, the new task force was also to explore the use of distributed ledger technology for private sector applications.
In April 2022, Sunak doubled down on its commitment to cryptocurrencies by releasing plans to make the UK a global center for crypto-tech. At the forefront of these plans was the call to recognize the stablecoins as a valid form of payment, a move that could significantly boost the UK crypto industry.
The report also pointed out that the “financial market infrastructure sandbox” built in 2015 would continue to allow crypto businesses in the UK to innovate without fear of clashing with regulators. Additionally, the Treasury would work with the Royal Mint on the production of an NFT and explore ways to improve the competitiveness of the UK tax system to encourage crypto development. “I have the ambition to make the UK a global center for cryptocurrency technology, and the measures we have presented today will help ensure that businesses can invest, innovate and grow in this country.“said Rishi Sunak.
Under Sunak’s chancellorship, the UK government continued its push for cryptocurrency. The UK Treasury has confirmed that stablecoin legislation will form part of the new UK Financial Services and Markets Bill. It should also be noted that the UK government’s approach to cryptocurrency regulation has been very fair to industry stakeholders. The Treasury launched multiple “calls for evidenceand invited comments from the public, such as when seeking the opinions of investors, professionals and companies engaged in decentralized finance to help draft tax legislation.
When Sunak stepped down as Chancellor of the Exchequer ahead of Prime Minister Boris Johnson’s resignation on July 7, it challenged the UK’s pro-crypto approach. There was no guarantee that the next government would promote crypto innovation or introduce fair regulation. Nadhim Zahawi, the acting head of the Treasury after Sunak’s resignation, had previously indicated that he was in favor of blockchain technology. However, for Zahawi’s replacement, Kwasi Kwarteng, it was unclear if he would continue Sunak’s pro-crypto commitments.
Now that Rishi Sunak is set to return to government – as Prime Minister – the future of crypto innovation and regulation in the UK seems clearer. In his new role, Sunak will likely appoint a Chancellor of the Exchequer who shares his positive views on crypto technology. Yet, with Sunak becoming the third British prime minister to take office since the last general election in 2019, his future is far from certain. He will have to convince members of parliament and the general public that he is capable of carrying out his duties in order to avoid being forced to call an election. survey data indicate that he would probably lose an election to the UK Labor Party). While Rishi Sunak’s appointment is generally good news for crypto in the UK, it remains to be seen whether he can maintain his position in the coming months.
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Rishi Sunak is the new Prime Minister of the United Kingdom. Here’s what he thinks about cryptocurrencies.
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