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- Capital inflows, job creation and GDP growth through digital economic development will more than offset the negative economic impact of Brexit
Following the announcement of their joint venture in May, GMEX Group (GMEX), a global provider of digital multi-asset exchange trading and post-trade business solutions, and the DAG Global (DAG), a trusted digital and crypto economy platform connecting traditional financial services with emerging digital assets, have collaborated to deliver a new report on The Digital Opportunity of Brexit – A Blockchain Economy in the UK.
Earlier this year, DAG Global published a report with the UK Parliament APPG on Blockchain, together with the Big Innovation Centre and Deep Knowledge Ventures, outlining the current state of blockchain investment in the UK as well as the considerable ecosystem that has emerged largely without a supportive UK industrial strategy. This latest joint analysis investigates a range of factors including Employment and GDP.
While the OECD and HM Treasury have anticipated that the UK’s economic growth prospects will be reduced by 3% overall until 2020 due to the impact of Brexit, a Bank of England report of July 2016 estimated that UK GDP could increase by 3% by introducing a Central Bank Digital Currency (CBDC) and we have undertaken our own comprehensive analysis which confirms these figures. Establishing a digital economy has the power to erase the negative economic effect of Brexit entirely, as well as the scars.
As a result of nurturing the digital economy in the Britain, the report concludes that the impact of capital outflows as a result of Brexit is likely to be “enhanced” in net annualised GDP terms by 3.4% through the creation of a wider digital economy within the UK attracting foreign investment and creating 250,000 jobs over 5 years offsetting the projected loss of 150,000 jobs as a result of Britain’s exit from the European Union.
Hirander Misra, CEO of GMEX Group, commented “With the right Government support in the near term, the U.K. has an incredible opportunity to support an innovation economy centred on its relative strengths, namely with London as a leading international financial centre and, increasingly, as a technology hub with significant international investment.”
Sean Kiernan, CEO of DAG Global, noted that, “The U.K. is better positioned to adopt Blockchain and implement the necessary regulations post-Brexit compared to other European nations, such as Malta, as EU countries will have to contend with an upcoming programme of overarching EU blockchain regulation which is still in discussion. The comparative independence of the U.K. primes the country to be in a better position in the long run as it moves its markets forward independently.”
The GMEX and DAG collaboration is structured around a number of strategic areas including the delivery of Exchange initiatives with associated post-trade services including digital registry, blockchain clearing house, decentralised depository and custody; Digital Asset and Traditional B2B Banking, Crypto Fund Management and emerging technology incubation.
Misra and Kiernan are currently seeking input to a book they are publishing entitled “Tech Meets Trust: Blockchain Britain”, which will further explore the opportunities outlined in the report.
To read the full report including the statistics and methodology visit https://www.gmex-group.com/article-the-digital-opportunity-of-brexit-a-blockchain-economy-in-the-uk/
