The UK Government has declared that they will invest £10m on cryptocurrency and digital currency research, as part of new measures to support the use of bitcoin technology.
The Government has revealed plans to increase spending on the digital currency as part of the launch of a new initiative that brings together research councils, the Alan Turing Institute and Digital Catapult (an organisation that serves to drive the UK economy through the practical application of digital innovation).
Harriet Baldwin, the Economic Secretary to the Treasury of UK, has stated in a speech that she delivered at the Alan Turing Institute for Data Science, that the government has set aside £10million of funding for cryptocurrency research in the UK. Baldwin also mentioned that the country was working hard to create the right regime for cryptocurrency businesses, and to attract overseas investors to the UK. She also stated that “the fact that we are committed to bringing digital currency exchanges into regulation has been welcomed by the industry, and it’s already resulted in digital currency businesses relocating to the UK.”
Further, Baldwin gave the example of Circle, which is a Bitcoin services company, that has declared its intentions of opening an office in London, from where it would work on its European expansion. The economic secretary rhetorically asked, “Why the UK?”, and then answered that the response from Circle was very clear - it was because of the UK's attitude to Fintech and to digital currencies. She said that substantial work was going on to ensure regulation of cryptocurrency businesses, and that this fact has been warmly welcomed by the industry specialists, with many businesses now relocating to the UK.
UK one of best destinations for UK businesses
In short, the economic secretary pitched the UK as one of the best destinations for cryptocurrency businesses, and also said that the UK government has recently launched a research initiative which will bring together the Research Councils, the Alan Turing Institute, and Digital Catapult (an organisation that serves to drive the UK economy through the practical application of digital innovation), with industry within the UK, in order to address the research opportunities and challenges for distributed ledger technology.
Her words are very much like music to the ears of the cryptocurrency industry within London, as the city has shown great potential to become the digital currency hotspot in recent times, all thanks to the emergence of high-potential Bitcoin and blockchain startups within the city.
It should be highlighted that the UK Chancellor George Osborne is also openly supporting cryptocurrency, in order to boost the UK’s productivity. In short, we can conclude that the UK is seriously looking to conquer this field, and ensure that it becomes a prime hub for digital currencies.