HM Treasury

UK Aims to be Global Centre of Financial Innovation

HM Treasury

British government wants to support financial sector growth

On Wednesday UK Chancellor George Osborne announced that the Conservative government would support UK emerging FinTech companies and encourage innovation in finance.

Among this initiative, the UK government is looking into how virtual and digital currencies could, or should, be regulated in Britain. This means that they’ll analyse how important they could be for having positive change and encouraging innovation in the British financial sector.

Naturally, this means that Bitcoin and the rest of its cryptocurency cousins are sure to experience some sort of positive growth from this news. It’s key in understanding how they can be used as alternative payment methods and financing tools too.

The new change of tact also gives small and medium-sized businesses the opportunity to find alternative sources of finance – be it through crowdfunding, etc. – if they are turned down for finance by their bank.

It’s a bold move, but one that will surely see British financial innovation grow.

Already Britain’s alternative finance market is growing, expanding by 91 per cent in 2013 to reach almost £1bn in value. By 2014 it’s expected to reach £1.6bn in worth.

“Key to the government’s long term economic plan is cementing Britain’s position as the centre of global finance,” said Osborne in a statement released by HM Treasury. “It’s only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that we’ll ensure Britain’s financial sector continues to meet the diverse needs of businesses and consumers here and around the globe, and create the jobs and growth we all want to see in the future.”

 

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