UK Tech Pros Reject Government Crypto Hub Plans

UK IT professionals have rejected former Chancellor of the Exchequer Rishi Sunak’s plans to turn the island nation into a “global center for crypto-assets”.

Whether the plan survives this particularly turbulent period in British political history – which saw Sunak resign to be replaced by Nadhim Zahawi, whose tenure may be short-lived given the resignation of Prime Minister Boris Johnson – is another. affair.

Still, 58% of IT professionals said they felt the profession should not support the Treasury’s plan to make Britain a global center for technology and investment in crypto-assets, including cryptocurrencies. stablecoins and NFTs, according to a survey by the British Computer Society, the Chartered Institute. for that.

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Only 29% said working technologists should support the crypto project, while 13% were neutral.

Meanwhile, only 14% of tech experts surveyed said the former chancellor was right to ask the Royal Mint to launch an NFT this summer.

The vast majority of IT professionals in the UK – around 77% – were not convinced that the intention to recognize and regulate stablecoins “would provide financial stability and provide consumers with wider payment choice. ”. Stablecoins are a form of cryptocurrency usually pegged to another asset or another currency such as the British pound.

Despite claims to the contrary, the stablecoin concept has proven to be anything but stable when confronted with economic reality. Stablecoins have played a key role in the collapse of cryptocurrencies in general. “The highly publicized collapse of TerraUSD was like gasoline on a fire. The total cryptocurrency market capitalization has been halved since May, from around $1.7 trillion to around $900 billion at the end of June,” according to Forbes.

At the same time, anchoring a blockchain-enabled token may not be the panacea Treasury techs are hoping for. The pound hit a two-year low against the dollar during the turmoil ahead of the prime minister’s resignation.

Back to the BCS survey, and 69% of tech professionals in the UK think the public might not have the same level of trust in stablecoins as in commercial bank money, while the Bank of England should not guarantee a stable coin to cover possible risks.

The former chancellor has also asked the Royal Mint to launch its own non-fungible token (NFT). Sixty-eight percent of tech people said it was a bad idea. ®

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