Expert Reveals UK Crypto Predictions for 2025
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Loading... - Maria Laine
- 19 Nov 2024
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As 2024 draws to a close, the cryptocurrency landscape in the UK is buzzing with anticipation for what 2025 may hold. With Bitcoin experiencing a remarkable year, industry experts are turning their attention to the potential for increased adoption and market stability in the coming years. Bivu Das, managing director of Kraken UK, shares his insights on the future of crypto in the UK, highlighting key trends and developments that could shape the market.
Das predicts that 2025 will be a pivotal year for cryptocurrency adoption in the UK, with the number of Britons using or having used digital assets expected to surpass 17 million—equivalent to 25% of the population. This surge in interest is anticipated to be fueled by a combination of factors, including a more favorable regulatory environment under a potential Donald Trump administration, which may relax existing regulations upon his return to the White House in January 2025.
The Kraken UK director believes that as institutional demand for cryptocurrencies grows, established assets like Bitcoin will experience less volatility, even as their prices continue to rise. This stability could encourage more individuals to explore careers in the crypto industry, prompting universities to introduce specialized courses aimed at training the next generation of talent.
The recent decision by a UK pension fund to allocate 3% of its portfolio to Bitcoin marks a significant milestone for the acceptance of digital assets in traditional finance. Das argues that this move sets the stage for the City of London to embrace cryptocurrencies more fully, paving the way for broader institutional participation in the market.
Kraken UK has already observed a resurgence in demand, with both new sign-ups and reactivated accounts indicating a renewed interest in crypto trading. Das emphasizes that the appeal of cryptocurrencies lies in their ability to democratize access to wealth, allowing consumers to grow their financial assets without relying on traditional financial institutions that may impose restrictive eligibility criteria.
Das notes a growing appetite for stablecoins pegged to the British pound, particularly for their potential to reduce the costs of remittances and facilitate cross-border payments. Additionally, staking offers long-term holders the opportunity to earn yields on their crypto holdings, providing an alternative to traditional interest rates set by the Bank of England.
While discussions around the UK's potential central bank digital currency (CBDC), dubbed "Britcoin," continue, Das expresses skepticism about its necessity. He argues that existing financial infrastructure, such as the Faster Payments system, may render a CBDC redundant. He raises concerns about privacy and the clarity of use cases for such a currency, emphasizing the need for a thorough examination of its implications.
Kraken's commitment to education extends beyond basic blockchain concepts; it includes practical tutorials aimed at ensuring compliance and safety for consumers. Das highlights a recent partnership with Koinly, a tax provider, to help users understand their tax obligations when trading in crypto. This initiative is particularly important given the rising concerns around fraud, including authorized push payment (APP) fraud, which has resulted in significant financial losses in the UK.
With estimates from UK Finance suggesting that APP fraud losses reached £459.7 million, Kraken is focused on providing resources to help consumers avoid scams, including purchase and romance scams that prey on unsuspecting individuals.
Das underscores the importance of clear regulatory frameworks for the UK crypto industry. He argues that establishing well-defined rules will not only attract investment but also provide the certainty needed for growth. He warns that without proactive measures, the UK risks falling behind in the rapidly evolving crypto landscape.
Kraken differentiates itself in a crowded marketplace by being regulated by the Financial Conduct Authority (FCA), offering a trustworthy service to newcomers. Das contrasts Kraken's approach with other exchanges that have heavily invested in flashy marketing campaigns, emphasizing the importance of building a solid reputation based on reliability and compliance.
As the UK crypto market prepares for what could be a transformative 2025, the insights from Bivu Das highlight the potential for increased adoption, institutional investment, and a more stable market environment. With a focus on education, regulation, and the democratization of wealth, the future of cryptocurrency in the UK appears promising, setting the stage for a new era of financial innovation and opportunity.
