Rishi Sunak is the new Prime Minister of the United Kingdom. Here’s what he thinks about crypto-currencies.

The appointment of Rishi Sunak as the new UK Prime Minister could benefit the UK’s burgeoning crypto industry.

Rishi Sunak will become the next Prime Minister of the United Kingdom.

The news broke on Monday that rival candidates Penny Mordaunt and former Prime Minister Boris Johnson have dropped out of the Conservative leadership election, making Sunak the de facto winner.

After the resignation of the previous Prime Minister, Liz Truss, on October 20, the ruling Conservative Party began the process of electing a new leader and Prime Minister. Liz Truss, who succeeded Boris Johnson on September 5, was forced to resign after only 44 days in office. Her plans to “mini-budget“The economic mini-budget, which included significant tax breaks for high earners, drew strong criticism from the general public and from members of his own cabinet.

Rishi Sunak would inherit the position of prime minister of the United Kingdom in turbulent times. Throughout 2022, rising inflation has plagued the global economy. In the U.K., the consumer price index rose 10.1 per cent year-over-year in September, returning to the highs reached in July and indicating that inflation is likely to remain high for some time to come. Energy supply problems caused by Russia’s invasion of Ukraine only exacerbated the U.K.’s economic woes, causing energy bills to rise by another 80 percent in early October.

It remains unclear how Rishi Sunak will handle the UK’s pressing economic problems. The new Prime Minister has not yet formed a cabinet or presented policy plans to the general public. However, while Sunak’s economic strategy is still an unknown, his appointment could mark a continuation of several pro-crypto policy decisions made during his tenure as Chancellor of the Exchequer between 2020 and 2022.

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Rishi Sunak seems to have a positive view of crypto, blockchain and distributed ledger technologies.

While acting as Chancellor of the Exchequer in April 2021, Rishi Sunak proposed that HM Treasury and the Bank of England set up a working group to explore the creation of a central bank digital currency. CBDCs, as they are more commonly known, are digital currencies issued by a central bank rather than a commercial bank. They are generally assumed to use blockchain technology to verify transactions between parties, similar to the Bitcoin or Ethereum networks.

The exploration of a CBDC aligns with the Treasury’s goal of helping fintech companies grow and ensuring that the UK remains at the forefront of the digitization of finance. To that end, the new working group was also to explore the use of distributed ledger technology for private sector applications.

In April 2022, Sunak doubled down on his commitment to crypto-currencies by releasing plans to make the UK a global center for crypto-technology. At the forefront of these plans was a call to recognize stablecoins as a valid form of payment, a move that could significantly boost the UK’s crypto industry.

The report also noted that the “sandbox of financial market infrastructure“Built in 2015 would continue to allow crypto companies in the UK to innovate without fear of running afoul of regulators. In addition, the Treasury would work with the Royal Mint on producing an NFT and explore ways to improve the competitiveness of the UK tax system to encourage crypto development. “It is my ambition to make the UK a global hub for crypto-currency technology, and the measures we have outlined today will help ensure that businesses can invest, innovate and grow in this country“, said Rishi Sunak.

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Under Sunak’s chancellorship, the UK government has continued its push for crypto-currencies. The UK Treasury confirmed that stable currency legislation would be part of the new UK Financial Services and Markets Bill. It is also worth noting that the UK government’s approach to crypto-currency regulation has been very fair to industry stakeholders. The Treasury has launched multiple “calls for evidence“and invited public comment, such as when it sought input from investors, professionals, and businesses engaged in decentralized finance to help draft the tax legislation.

When Sunak stepped down as chancellor of the exchequer before the resignation of Prime Minister Boris Johnson on July 7, it called into question the UK’s pro-crypto approach. There was no guarantee that the next government would promote crypto innovation or implement fair regulation. Nadhim Zahawi, the acting head of the Treasury after Sunak’s resignation, had previously indicated that he was supportive of blockchain technology. However, for Zahawi’s replacement, Kwasi Kwarteng, it was unclear whether he would continue Sunak’s pro-crypto commitments.

Now that Rishi Sunak is set to return to government – as Prime Minister – the future of cryptographic innovation and regulation in the UK seems clearer. In his new role, Sunak will likely appoint a Chancellor of the Exchequer who shares his positive views on crypto technology. Yet, with Sunak becoming the third British Prime Minister to take office since the last general election in 2019, his future is far from certain. He will need to convince members of Parliament and the general public that he is capable of taking office in order to avoid being forced to call an election. polling data indicates that he would likely lose an election to the UK’s Labour Party). While Rishi Sunak’s appointment is overall good news for crypto in the UK, it remains to be seen if he can maintain his position in the coming months.

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