The UK is tightening the noose as it states a no-deal Brexit would lead to several consequences viz. companies would suffer from red tape, costly payments, and border delays while Britons living in EU can lose access to their UK bank accounts. This will certainly become a catalyst for Bitcoin adoption and boom as people move to crypto.
Brexit to be the catalyst for the Bitcoin boom, UK bank deal solidifies it
According to the latest reports, if Britain leaves the EU with no deal, the Britons residing in the European Union might not have any access to their bank accounts.
The Britons will be able to use the bank cards to withdraw money in EU countries but more than 1 million citizens of UK living outside the country won’t be able to use their British accounts to either make deposits or borrow.
Additionally, contracts like annuities that pay pension might not be accessible while the banks offering these services can also be impacted.
Britain further stated that the companies that are trading with EU would also face a red tape, costly credit card payments, and border delays if the govt. doesn’t negotiate an exit deal before Britain leaves.
Brexit nightmare: Threats are rising, Bitcoin is the answer
Reuters reported that
“Brexit minister Dominic Raab played down the threat that tens of thousands of British retirees in the EU – many of whom live on the Spanish Mediterranean coast – could lose access to their pensions.”
Furthermore, the UK won’t decide the debt issued by EU as “zero risks” for which banks may have to raise additional capital. Due to the absence of no mutual recognition rules, the bank holding penalized securities would either have to raise capital or sell their holdings in the Brexit needled market, similarly, British banks would be penalized by EU supervisors.
Additional layers of supervision, adverse liquidity, and capital consequences would be faced by banks due to UK’s no-deal Brexit.
However, this would certainly mean good things for Bitcoin as Max Keiser shares with his Tweet,
“UK/EU banks are committing leveraged suicide en masse. Most bullish #Bitcoin news of 2018,”
— Max Keiser (@maxkeiser) August 24, 2018
From the circulation of goods to the businesses, everything will be affected that will only cause sterling to drop further. This would present a great opportunity for the investors to buy Bitcoin with sterling. Bitcoin will serve as a safe haven for investors who will be looking to move away from the fiat speculation and find a hedge to safeguard their wealth.
— Stuart (@stuchi1975) August 23, 2018
People are already moving or have moved to Bitcoin as the Brexit chaos keeps on getting bigger and messier.
— Paul Melton (@Shadhammer) August 23, 2018
Prepare yourselves for a "No Deal Brexit", and buy Bitcoin. I refuse to back government money. This is their fault.
— Eddie Bitcoin 'Blockchain' (@ChainOfBlocx) August 23, 2018
No-Deal Brexit is only going to boost Bitcoin adoption as businesses and money get affected. Furthermore, a rise in the cost of credit card payments, processing of payments and red tape can be eliminated through Bitcoin and other cryptocurrencies. So, it’s time that Bitcoin rise to the power!