The Rise of Cryptocurrency in the UK

By Staff Reporter - 21 July 2020

Features

The urge to know more about digital currency has significantly risen. This article explores digital currency, the state of the Cryptocurrency market, and its impact in the next few months, especially after the COVID-19 outbreak.

A cryptocurrency is a form of a digital currency controlled by computers in a network. Most of these computers run open-source software, and their work is the verification of every cryptocurrency transaction.

Bitcoin is not a new word in the business sector, and it is one of the first types of cryptocurrencies to be used. Since then, many more digital currencies were introduced and each with its unique characteristics. For instance, Bitcoin Cash and Litecoin focus on transaction processing, while Ethereum is suitable for running applications and creates contracts. Blockchain is the technology behind the management of these transactions. The technology has been in use for quite some time in the management of health records.

For a long time in the United Kingdom, blockchain has been used to help in the recording and administration of benefits and pension payments. In the last few years, the British population came to accept cryptocurrency and the use of blockchain as a form of payment and started being part of it.

Financial institutions are considering their cautious attitude towards these currencies. The involvement of financial institutions on how they perceive digital currency to work gives more confidence to the public when they consider using it. 

A few months after the COVID-19 outbreak, UK consumers were avoiding physical contact by not visiting stores. As a result, there is a surge in online purchases, increasing the need to have more cryptocurrency transactions. The coronavirus's impact has had a damaging effect on world economies, leading investors to opt for digital currencies. The demand for cryptocurrencies is going up contrary to its volatile nature. With giants like Facebook moving towards cryptocurrency transactions, more businesses are willing to accept transactions made through digital money. 

The Regulatory Cryptocurrency survey conducted by the Financial Conduct Authority (FCA) on their report crypto-asset consumer research 2020 estimated that 3.86% of the British population own cryptocurrencies. That percentage represents 1.9 million adults out of the 50 million who are above 18 years old. 

All cryptocurrencies are unregulated. However, it has proved to be a secure mode of payment. It has several advantages over traditional forms of payment such as: 

Attract new clients 

The COVID-19 pandemic increases the desire to own some cryptos due to the government's call to minimal or no contact when visiting stores to purchase goods. 

Low transaction fees

No charging fees will apply to your account when paying directly using cryptocurrencies. With digital currencies, it is either in existence or not. 

Global acceptance

Any cryptocurrency has a similar value in whatever country you visit. Giving you a chance to save money that would have been used in foreign exchange. 

Secure personal information 

No one will ever know when you use your crypto account because it does not reflect any form of a statement. 

Regulatory financial institutions are looking beyond the hype by issuing byte-based currency alongside the paper money. This approach may help given the coronavirus social distancing regulation that is changing how people interact and pay in the marketplace.

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