CryptoMate talk bitcoin and Brexit

Tuesday 12 July 2016

The peer-to-peer UK exchange service offers its thoughts on what comes next.

The UK’s decision on 23 June to leave the EU has been making big waves in the financial and political arenas. Markets have been shaken, with the FTSE 250 taking a significant hit as a reflection of confidence in the UK economy. Sterling, too, has fallen markedly against the dollar, down from a recent high of $1.50 before the referendum to below $1.30 now.

Bitcoin tends to thrive on this kind of uncertainty. It would be wrong to call it a ‘safe haven’ asset like gold given its own propensity to swing wildly in value. However, it’s undeniable that whenever things look shaky in the wider global economy, bitcoin gets a bump in exposure.

A year ago I spoke to UK peer-to-peer bitcoin exchange CryptoMate about their views on the situation for bitcoin in Britain. CryptoMate, with its international team, is well-placed to comment on both crypto and the European situation. So as the political and economic fallout continues, I thought it would be good to get their take on what it might mean for their business and for bitcoin. Will Thomas gives his thoughts.

WillCryptoMate's Will Thomas is optimistic about the effect of Brexit, and the prospects for bitcoin businesses

Brexit has dominated the UK news for months and had major repercussions over the last fortnight since the Leave result. How has this affected Cryptomate?

Will: It hasn’t really affected us in any significant way since the result was declared, but we’re all confident it will have a positive long term impact - not just for us as a cryptocurrency exchange, but every other British business too. We all supported leaving the EU since the referendum announcement was made and we’re all happy with the result. Even those of us on the team outside the UK.

As an international team operating in the UK, what are your personal thoughts about Brexit?

Will: I think I speak for everyone on the CryptoMate team when I say we’re over the moon with the result. We all believe strongly in national sovereignty and parliamentary democracy. The thought of unelected commissioners having legislative power over our industry (and our entire lives) paints a bleak future, should we have voted to stay in the EU. David Cameron has been fairly supportive of our industry since taking office and we hope the next PM continues that support.

In terms of how this impacts CryptoMate and your business model, what do you see for the coming months?

Will: The vote to leave doesn’t really change anything for us as a business in the short term, as you know we’re still part of the European Union until Article 50 is triggered and then it will be up to two more years until we’re fully out. But in the long term it may have an impact on our International Crowdfunding expansion campaign, as we’ve already seen since the vote that the EU is looking to further regulate Bitcoin now they feel they have no British opposition.

In the second half of the interview, the guys talk about Sterling, Britcoin and what's to come for the EU.

 


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