The appointment of Rishi Sunak as Prime Minister is good news for cryptocurrency adoption and FinTech in general, the industry believes.
Sunak resigned as Chancellor this summer as he felt his approach to the economy was “fundamentally too different” to that of then PM Boris Johnson.
A fiscal Conservative, he believes in boosting productivity and empowering tech businesses to raise living standards across the board. However his stint in the Cabinet was characterised by crisis management as COVID-19 threatened to cause mass unemployment, leading to initiatives such as the furlough scheme which went against his core instincts.
Once something approaching normal service resumed, he and Johnson failed to see eye-to-eye, with BBC economics editor Faisal Islam reporting that Sunak was keen to discuss the impact of inflation publicly while No.10 preferred to borrow more and tax less.
After Johnson was ousted from office, Sunak was seen as a credible successor – but a Conservative membership which saw him as disloyal opted for Liz Truss. Following a disastrous 44 days in office, Truss departed and Sunak is now installed following talks with Johnson, who was considering an unlikely comeback.
During his time as finance minister under former Johnson, Sunak announced he wanted to turn the UK into a ‘global hub for crypto’. He helped usher in the Financial Services and Markets Bill, currently making its way through Parliament, seen as a global lead in the push for the regulation of cryptocurrency and digital assets. The Royal Mint was even commissioned to create a non-fungible token (NFT) collection.
“Rishi Sunak has always been vocal about his pro-crypto stance, particularly CBDCs (central bank digital currencies),” said Pavel Matveev, CEO of UK-based and FCA-regulated crypto payments firm Wirex.
“In July this year he was pushing ahead with a new law that will pave the way for everyday crypto payments, despite the Bank of England having fears about the stability of the technology. Back in April, Sunak laid out his ambition that he wants Britain to be a ‘global hub’ for crypto and the technology, and that stablecoins should be accepted as a form of payment.
“In order to do so, this means that he would likely encourage investment and the growth of businesses related to the field. We are optimistic that we can achieve this in the UK – and look forward to seeing what the government can do for the crypto sector.”
Andrew Megson, CEO of My Pension Expert, said: “An incredible amount of chaos has ensued in the six weeks since Rishi Sunak’s failed first attempt to become Prime Minister. Now, he has the chance to prove himself – in the biggest way possible – by extinguishing the fires set alight during Truss’ 45-day reign of market crashes and embarrassing U-turns.
“Market stability will be a priority. Sunak’s first leadership campaign was led on a promise of fiscally conservative policies, which has already pleased the markets and given the pound a boost. However, it’s also crucial that the new PM focuses on immediate reassurances for Britons struggling to stay afloat amid a soaring cost-of-living crisis. Confirming his stance on key policies such as the triple lock, or benefits cuts, would be a step in the right direction.
“Sunak will be keen to hit the ground running and deliver on his previous promises of fiscal responsibility. However, he must balance this with the appropriate support, if he is to restore the public’s confidence in their financial futures, and indeed Tory economic policy. Only time will tell if this will be the case.”