To many, London is already regarded as the financial hub of the world with a large proportion of world trade occurring within. However, with the uncertainties of Brexit looming on the horizon, many economists and professionals believe that London could lose its crown as the worlds global financial centre within the next 5-10 years.
At this time, London’s financial sector is far larger than that of other financial hubs such as New York, though it remains in competition with it on a yearly basis. Despite this, many large businesses are facing the great unknown in the years to come and some companies have already relocated elsewhere due to the potential outcomes that Brexit could bring forth.
Furthermore, banking giants such as Goldman Sachs have already announced plans of relocating their London hubs to Frankfurt and Paris. Economically, this could prove detrimental to the UK economy not only for the jobs that will be removed, but also because of the potential for other major banks and business to follow by relocating.
Could Cryptocurrency be the solution to these problems?
It was recently announced that London’s exchange group ‘LMAX’ is set to introduce a cryptocurrency trading platform which targets institutional investors. It aims to offer the ability to securely trade cryptocurrencies such as Bitcoin, Ethereum, Ripple, Litecoin and many more whilst asserting itself as a credible and efficient platform to its clients.
Exchange Group CEO David Mercer explains:
“We are furthering the legitimisation of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity.”
Whilst it is unlikely that one or even a few exchanges trading cryptocurrency could shape the way London is as a financial hub of the world, the introduction of multiple exchanges offering platforms of trading cryptocurrency can only be a financial benefit for London.
The demand for cryptocurrency is evidently rising over recent months which would certainly be a strong indicator to financial institutions within London that it is time to adapt and attempt to meet this growing demand. Therefore, there is definitely great potential in the future for London to become the worlds hub for not only financial services, but also for cryptocurrency investment and trading.
International Political Economy student & Cryptocurrency enthusiast.
Founder of OurEconomy.