Papers released by the UK government today reveal that if the country leaves the EU without making a deal, citizens would be faced with increased fees for cross-border payments.
Anybody who follows cryptocurrency will know that one of blockchain’s best use-cases is low-fee international money transfers. It’s highly likely that in the event of a no-deal Brexit result, cryptocurrency will experience a surge of adoption in the country.
London alone employees a huge amount of foreign workers, many of which send money back to their home countries on a monthly or even weekly basis. Any increase in cross-border payment fees would have a devastating effect on millions of migrant workers, prompting them to seek out alternative methods.
Thousands of businesses could also be hit with increased fees and reduced speeds for completing cross-border payments.
The revelations came amidst a long list of potential issues UK citizens may face in the event that the government is unable to reach a deal with the EU. The papers also outlined political and financial situations that citizens should begin to prepare for – a sure sign that the government does not expect a deal to be made.
Another section of the documents stated that “The cost of credit card payments between the UK and the EU will likely increase”, further fuelling the likelihood that cryptocurrencies could be adopted as an alternative payment method.
Presently, the majority of cryptocurrencies are not fully developed for everyday use or as fiat currency replacements. However, the deadline for the UK to leave the EU is still seven months away giving burgeoning coins a chance to prepare for mainstream adoption.
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