The Truss Exit & Rishi Sunak’s Arrival
For Sunak to lead the UK’s crypto efforts, the exit of Liz Truss was a necessary first step. According to Millicent Labs co-founder Kene Ezeji-Okoye, the future of crypto in the UK looks promising. Truss, who served only 45 days, resigned after her economic policies caused instability. Sunak, a proponent of crypto regulation, was chosen to replace her, with his appointment welcomed by both the government and advocates for fintech, including Adam Jackson from Innovate Finance.
Rishi Sunak’s Crypto Vision for the UK
Sunak has already outlined plans to regulate crypto and establish a British NFT minting platform by the end of the year. The UK government announced in April that it aimed to make the country a crypto hub, with Sunak playing a central role in maintaining the financial services sector’s leadership in the global tech landscape, as well as attracting investments and job opportunities.
The Phases of Sunak’s Pro-Crypto Strategy
Sunak’s initial plan focuses on creating a “financial market infrastructure sandbox” to enable firms to experiment and innovate within the crypto asset space. Following this, he intends to form the Crypto Asset Engagement Group to work with the industry and find ways to make the UK’s tax system more competitive in the crypto asset sector. Stablecoins will be a key focus, as these assets are linked to fiat currencies and can help stabilize value.
The Concept of “Britcoin”
During the pandemic, Sunak’s popularity soared after introducing several financial measures aimed at helping people. One such initiative was the proposal of a central bank digital currency, dubbed “Britcoin.” Slated to launch by 2025, Britcoin would be used for electronic payments, potentially enhancing transaction speed and reducing costs. However, some critics worry about its implications for privacy and regulation, particularly concerning funds for bank loans and interest rates.
Despite the confusion around Britcoin, Sunak remains a vocal supporter, and it could become a major part of the UK’s financial future under his leadership.
Sunak’s Royal Mint NFT Initiative
At 42, Sunak is the youngest Prime Minister in UK history and, with a personal fortune of £730 million, the wealthiest. His leadership signals potential proactive changes for the crypto industry. In April, he commissioned the Royal Mint to release a non-fungible token (NFT) by the end of the year, marking a significant step toward integrating digital assets into the UK’s economy.
Sunak also played a key role in drafting a bill on financial services and a markets bill that will provide a regulatory framework for stablecoins and crypto assets, shaping the future of the UK’s crypto landscape.
