Last
night’s
landslide
victory
of
the
UK’s
Labour
Party
in
the
general
election
saw
little
to
no
mention
of
Bitcoin,
blockchain,
or
digital
assets.
Leading
up
to
the
election,
the
party’s
manifesto
remained
silent
on
crypto
or
Bitcoin
at
a
time
when
the
topic
is
becoming
increasingly
prevalent
in
the
US
election
race.
However,
Labour’s
previous
statements
and
plans
suggest
a
cautious
yet
open
stance
toward
blockchain
technology.
While
not
directly
addressing
crypto,
Labour
has
shown
interest
in
related
technologies,
such
as
the
support
for
the
tokenization
of
assets.
Shadow
Chancellor
Rachel
Reeves
and
Shadow
City
Minister
Tulip
Siddiq
have
shown
openness
to
the
tech
sector.
Siddiq,
in
particular,
has
stated
that
if
Labour
is
victorious,
it
would
aim
to
transform
the
UK
into
a
global
center
for
tokenized
assets.
Labour
backs
Digital
Pound,
but
what
could
it
look
like?
Labour’s
financial
services
plan,
“Financing
Growth,”
acknowledges
the
growing
case
for
a
state-backed
digital
pound
and
emphasizes
the
need
for
“financial
products
to
reach
underserved
communities.”
“Embrace
innovation
and
fintech
as
the
future
of
financial
services
by
becoming
a
global
standard-setter
for
the
use
of
AI
in
FS,
delivering
the
next
phase
of
Open
Banking,
defining
a
roadmap
for
Open
Finance,
embracing
securities
tokenisation
and
a
central
bank
digital
currency,
and
establishing
a
regulatory
sandbox
for
financial
products
to
reach
underserved
communities.”
The
party
has
fully
supported
the
Bank
of
England’s
ongoing
work
in
this
area,
indicating
a
commitment
to
continue
exploring
and
developing
a
CBDC.
However,
Labour’s
approach
appears
measured
and
potentially
unique
from
other
planned
implementations.
They
have
highlighted
the
importance
of
addressing
key
concerns
such
as
privacy,
financial
inclusion,
and
stability
in
designing
any
potential
CBDC.
This
potentially
more
balanced
perspective
suggests
that
Labour
is
not
rushing
headlong
into
digital
currency
implementation
but
instead
taking
a
considered
approach
that
prioritizes
public
interest
and
economic
stability.
Labour’s
plan
also
emphasizes
the
importance
of
making
the
UK
a
global
hub
for
securities
tokenization.
This
focus
on
exploring
the
tokenization
of
securities
indicates
a
forward-thinking
approach
to
financial
services
that
could
enhance
the
UK’s
position
as
a
fintech
leader.
The
party
has
expressed
intentions
to
advance
open
banking
initiatives,
explore
the
potential
of
open
finance,
and
establish
regulatory
sandboxes
to
test
financial
products
aimed
at
underserved
communities.
These
initiatives,
alongside
CBDC
development,
could
contribute
to
a
more
inclusive
and
technologically
advanced
financial
ecosystem
in
the
UK.
Healthy
skepticism
for
CBDCs
As
with
any
attempt
to
deliver
a
CBDC,
it’s
important
to
remain
skeptical
due
to
its
potential
for
governmental
overreach
and
abuse.
However,
as
one
of
the
few
‘Left
Wing’
governments
to
oversee
a
CBDC,
Labour
could
offer
a
unique
take
on
its
design,
especially
given
ongoing
debates
within
the
party
on
Universal
Basic
Income
and
its
focus
on
ordinary
working
people.
Labour’s
support
for
CBDC
exploration
does
not
equate
to
an
immediate
implementation
plan.
The
party
has
emphasized
the
need
for
thorough
consultation
and
careful
consideration
of
potential
impacts.
This
cautious
approach
could
help
mitigate
risks
associated
with
CBDCs,
such
as
privacy
concerns
and
possible
disruptions
to
the
existing
financial
system.
I’ve
not
been
personally
optimistic
that
a
CBDC
can
be
designed
to
offer
benefits
to
ordinary
people,
but
maybe
there
is
a
chance
with
Labour.
It
is
clear
that
FIAT,
in
its
current
form,
is
failing.
A
move
toward
a
system
that
creates
more
transparency
over
government
spending,
more
accessible
access
to
finance
for
the
unbanked,
cheaper
and
faster
international
transfers,
reduced
costs
of
Central
Bank
printing,
increased
privacy,
and
a
reduction
in
financial
crime
would
be
a
positive
step.
However,
designing
a
CBDC
to
offer
all
these
things
without
the
more
Orwellian
alternatives
may
require
too
much
of
a
leap
of
faith
for
most.
A
party
with
socialist
origins,
with
a
forward-thinking
and
modern
technology
focus,
in
the
2024
United
Kingdom
could
theoretically
adopt
the
best
of
what
blockchain
offers
without
overreaching
if
appropriately
advised
by
those
in
the
digital
assets
industry.
For
me,
this
would
mean
adopting
Bitcoin
as
a
reserve
asset,
using
ZK
technology
to
design
a
CBDC,
and
creating
immutable
smart
contracts
on
a
public
ledger.
We
would
have
one
shot
at
this,
and
it
would
have
to
be
designed
so
that
a
future
government
could
not
alter
it
to
take
advantage
of
its
citizens.
Perhaps
I’m
too
much
of
a
dreamer,
but
I
believe
blockchain
can
be
a
core
part
of
government;
we
just
have
to
do
it
right.
The
coming
months
and
years
will
be
critical
in
determining
whether
the
UK
under
Labour
leadership
can
successfully
navigate
the
complex
landscape
of
digital
currencies,
balancing
innovation
with
stability
and
public
interest.
If
successful,
the
UK
could
emerge
as
a
global
leader
in
the
responsible
development
and
implementation
of
CBDCs,
setting
a
precedent
for
other
nations
to
follow.
Go to Source
Author: Liam ‘Akiba’ Wright
