A recent survey by the market intelligence firm Cindicator is suggesting that Brexit could raise the value of cryptocurrencies. This comes as there is increasing uncertainty mounting regarding the UK’s planned exit from the European Union.
62% of analysts believe Brexit will boost cryptocurrency prices, 74% are considering holding cryptocurrency
Cinidicator recently ran a poll on how financial analysts believe that the UK’s impending withdrawal from the European Union will affect cryptocurrency prices. Moreover, the study found that a whole 62% of the financial analysts polled believe that Brexit will lead to higher cryptocurrency prices.
In addition to this, around 74% of the respondents also reported that they are considering holding cryptocurrencies in their financial portfolios. It should be noted, that Brexit is still a highly contentious issue, with unclear implications.
The British Parliament recently sought to take control of the Brexit process, after British Prime Minister Theresa May’s Brexit deal had failed to garner sufficient support. However, it would seem that Parliament is having just as much difficulty deciding how to proceed as May has had.
In fact, eight Brexit options were fielded in Parliament on this past Wednesday, in an attend to find a consensus route forward through a series of indicative votes. Nevertheless, all eight alternatives were eventually rejected by MPs.
In addition to this, Theresa May has proposed that she would step down as Prime Minister – but only if her Brexit deal was passed by British MPs. Even so, May’s Brexit deal was voted down for a third time earlier today.
How would Brexit impact cryptocurrency regulations?
As such, Brexit is still as uncertain an affair as ever before. If the UK does go through with its withdrawal from the European Union, however, this could have implications for cryptocurrency regulations in the nation.
The poll from Cindicator found that a full 44% believed that ”a post-Brexit Britain could be inclined to take a progressive stance towards cryptocurrency regulation”.
Furthermore, Cindicator notes that this could, in turn, enable future blockchain innovations and drive increased adoption. In comparison, only 9% of the polled analysts believed that a post-Brexit United Kingdom would have a negative view of digital assets.
Nonetheless, the reasoning behind Cindicator’s findings is sound. If the UK does choose to follow through with Brexit, that would increase the uncertainty for investors. As such, the British pound would likely fall even further.
Consequently, Bitcoin and other cryptocurrencies could well become more attractive, both as a way to hedge against a falling British pound, as well as to ease future cross-border transactions.
Image by Adam Derewecki from Pixabay
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.