Can Bitcoin Boost post-Brexit Britain?
The Blockchain on which Bitcoin is built could help the UK overcome some of the more complex challenges Brexit will bring, according to one expert.
Blockchain specialist and CFO of Humaniq, Javed Khattak, says that crypto technology could help Britain’s exit from the European Union.
If the UK decides to exit the single market, trading with neighboring countries will mean reaching trade deals to cover tariffs, taxes, and quotas on goods and services.
According to Khattak, this will further, “put pressure on the operational departments that need to manage these operations in a timely fashion, including retaining records.”
Speaking to Express, he said:
“This is where Blockchain can come to the UK’s rescue.
“Blockchain implementation into the entire supply chain could be one solution to any potential Brexit-related trade problems; effectively addressing all the complexities around trade of goods and services.”
The Blockchain is versatile enough to be used a wide variety of commercial activities.
For UK customs union and tax authorities, that means the entire process of trading can be made entirely transparent.
Tariffs and taxes can be calculated against the value of the products using smart contracts, entirely automatically.
The UK government could keep track of products internationally imported, or exported, with ease.
After Brexit, the UK could use Blockchain technology in all international trading.
Mr. Khattak said he believes post-Brexit Britain could even become a financial technology hub, adding:
“I believe investing in Blockchain will put the City of London in a position to benefit by attracting talent through startups focused on innovation and disruption in the economy, and maintaining its position as Europe’s leading fintech hub, even post-Brexit.
“I believe the UK needs to take the initiative to invest in Blockchain technology, as well as provide more support to startups in the form of grants and a Blockchain / innovation-friendly regulatory environment which will help alleviate some of the trade-related problems that the UK might face due to Brexit, since the technology is cost-effective, hassle-free and saves ample amount of time and effort while enhancing security and scrutiny, and reducing human errors.”