CryptoMate talk bitcoin and Brexit II
Monday 18 July 2016
The peer-to-peer UK exchange service gives its opinions on the EU, Sterling and Britcoin.
It’s been a mad few weeks, with the result of the referendum throwing global markets and domestic politics into disarray. The pace of change is so fast it’s hardly possible to write an article on the current situation - it changes from day to day.
In the first part of this interview, Will Thomas from CryptoMate gave some initial thoughts on Brexit and bitcoin. Will is optimistic about the UK’s prospects outside of the EU, and believes it is a step forward for democracy. It may have implications for bitcoin businesses, too, freed of EU bureaucracy and the threat of additional regulation for crypto companies. Here, he and team-mate Andrin Ehrenmann look at what might come for the EU, and Sterling’s outlook for the future.
CryptoMate is doing ok, despite Brexit
We have seen a crash in Sterling against USD since Brexit, down from $1.50 to around $1.30. Since bitcoin trades mainly against USD, has this had implications?
Will: Most of our vendors tend to stay within GBP or BTC, so the foreign exchange rates on other FIAT currencies hasn’t had a huge impact on things. The price of GBP/USD has been in steady decline since mid 2014, so the recent drop wasn't a total shock when the result went against the predictions, despite the UK being the best performing Western economy in recent years. I’m sure that GBP will recover over the coming years, but that’s all dependant on who takes office in number 10 and how they negotiate our position outside the EU.
How do you see things playing out on the European stage and the global economy? For example, do you think the EU is finished? What about Greece being hit by the resulting economic uncertainty and having trouble paying its bills? Far right movements gaining traction?
Will: As you may have seen on the continental European indices they’ve been hit even worse than our markets by the Leave vote. Which would make sense since in terms of trade we have the upper hand, it’s in the EU’s interest (or the EU’s citizens interest rather) to have a free trade deal with the UK. But as we’ve seen over the past few decades the EU does not always do what’s right for the people they supposedly represent, which is why in the next decade we’re going to see more referendums and stronger calls for reform. I personally don’t think the EU can reform and is doomed to fail. The EU has become the sick man of the globe, falling behind every other economy and a constant decline in terms of global share of GDP.
Are there any other interesting developments afoot for CryptoMate?
Andrin: We’re going to be partnering up with the guys at Britcoin, who recently gained funding for development and we’re all very excited about that. Brit is a cryptocurrency launched (by Will Thomas) in mid-2014 to be a British alternative to BTC. We’re hoping to get a Brit market online on CryptoMate in the coming months and help promote the project in other ways.
We’ll look forward to seeing how things develop, both for CryptoMate and the EU. It looks like one of them has a bright future.
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