In a bid to keep the UK competitive in the “global digital race,” a coalition of trade bodies have written to Varun Chandra, the Prime Minister’s Business & Investment SpAd.
In the letter, the UK Cryptoasset Business Council (UKCBC), techUK, Global Digital Finance, The Payments Association, Digital Currencies Governance Group (DCGG) and Crypto Council for Innovation urged greater strategic focus on decentralised finance.
Following the proposal of other government-led initiatives in jurisdictions such as Singapore, UAE, and Hong Kong, which are attracting and onshoring business, the letter is pushing for similar strategy to be implemented in the UK.
The associations have proposed four main asks of the UK government with the intention of delivering investment, growth, and jobs to strengthen to UK economy’s involvement in “DeFi”.
The letter reads: “In response, we, the undersigned, have put forward clear and practical recommendations that this government should implement that would help deliver on strategic government priorities whilst signalling confidence in the UK’s digital economy.”
With a focus on developing the “pro-innovation regulatory framework,” the UK is recommended to follow the lead of the US and appoint blockchain special envoy.
By appointing a specific lead on blockchain development, the UK could become a premier investment destination, which would drive policy alignment, foster innovation and send a strong signal to global markets of the UK’s global competitiveness, according to the groups.
Moreover, mirroring the government’s proactive approach to AI technology, the letter proposes a “Government Action Plan,” specifically for digital assets and blockchain technology.
Recognising the synergy between blockchain, AI and quantum computing to fortify security, scalability and innovation is also a priority within the letter.
Effective policymaking is the group’s final recommendation, calling for an industry-government engagement forum to ensure informed policymaking and cross-sector collaboration.
