Brexit is an abbreviation for “British exit”. In 1973, the United Kingdom joined the European Union (the EU), then known as the EEC (European Economic Community). This allowed the UK to be part of the European Single Market which enables the free movement of goods, capital, services, and
On the 23 June 2016, the UK held a referendum where voters were asked only one question – whether the UK should leave or remain in the EU. One day later, the results were announced: a slim majority of British people voted to leave the EU (52% of voters).
The countdown to Brexit began on 29 March 2017, when the UK government invoked the official withdrawal process from the EU, aka Article 50. As a default, the United Kingdom would cease to be a member of the EU on 29 March 2019.
On 22 March 2019, the EU agreed to extend Brexit’s deadline to either 12th April or 22nd May, depending on the outcome of the Withdrawal Agreement vote. This would be voted on by the UK Parliament during the last week of March.
Blockchain & Brexit
As the U.K. gears up to leave the European Union (EU), for commerce, there remains the unknowns of how trade will be affected, as well as how capital, goods and services can be tracked. A study found that across 200 businesses surveyed, more than half of large and mid-sized companies queried are looking to adopt blockchain in an effort to mitigate operational risks in the wake of Brexit.
About 33 percent of firms said they will use blockchain to combat fraud, while 11 percent will use blockchain to help cut costs and 10 percent see blockchain as useful in supply chain management.
- People and immigration
The UK’s changing relationship with the EU access to the will impact the immigration status of employees across both markets, visa checks may become more common.
Blockchain systematically tackles the challenges of digital identity as it was designed to enable sharing of data between multiple parties, without the need for an intermediary.
When applying this to the movement of people, blockchain can enable the sharing of a secure digital passport of qualifications which can be easily accessed by employers to validate a candidate’s credibility and legality to work in any given country.
2. Trade and customs
The UK and EU negotiations will ultimately decide whether the current free trade area will continue, but signs are currently pointing towards the UK leaving the EU Customs Union, necessitating some level of border controls on the UK-EU frontier. This will involve an administrative overhead, which results in increased cost, labour and overall is inefficient.
Blockchain serves as a shared ledger of transactions that can run smart contracts to ensure supply chain integrity and provenance tracking, therefore it has the potential to offer a system of recording customs data that can be shared both securely and transparently while reducing administrative costs and time delays. This essentially could avoid the need for border stops for many products, helping business to deliver operational efficiency and government to maintain a smooth customs and border regime.
The convergence of the Internet of Things, AI and blockchain could provide a means whereby cross border trade could be automatically tracked, tariffs calculated and regulations upheld; enabling any issues or violations to be detected and addressed early
3. Economics and policy
The government and UK businesses now need to think differently about how they boost UK productivity growth and make the UK a magnet to retain and attract business.
Blockchain is already having an impact on many government services across the globe, including transportation, healthcare, cybersecurity and pensions.
Brexit has been a protracted and highly convoluted process.From the findings, the public remain somewhat optimistic about the state of the crypto markets in the midst of Brexit and a slowing global economy.
About 62% believe that Brexit will have a somewhat positive impact on crypto prices. In terms of their investment strategy, around 74% are considering holding cryptocurrency in their portfolio.
The optimists (44%) believe that post-Brexit, Britain could be prompted to take a progressive stance towards cryptocurrency regulation and enable blockchain innovations, which would increase the adoption rate of the technology. Therefore, the blockchain innovations and technologies can be seen as highly