Danger looms in the British banking sector ahead of crucial impending Brexit deal according to a U.K. finance chief, Stephen Jones. He said this in an interview with a local news media, Channel 4 News that a no-deal Brexit would create a “1930 style contraction.”
The Dangers of A No-Deal Brexit
Stephen Jones informed Channel 4 News on what he is most worried about that a no-deal Brexit taking place on March 29th which will see U.K. crash out of the E.U. remains a worry to him. This he views as a catastrophe; a social and economic catastrophe which will negatively impact the banking industry also.
Jones continued, saying the situation is about jobs, and people not being able to pay their mortgages, not able to pay back their loans which are bad news and it’s an outcome that can be avoided.
He further stated that he does not wish to be labelled a doom monger, and the main focus of the banking industry is to deal with whatever challenge that may be thrown at it as best as it could. He, however, stated that if the economy contracts by 10 percent, it will be a 1930 style of contraction. This will feature a massive increase in credit card losses, mortgage losses, vehicle loan losses, among others.
Jones also stated that he backs a solution that avoids a no-deal Brexit, but admits that the Theresa May’s deal is not a great deal. This he noted that there is an awful amount of money being paid for the political declaration which in his view is not worth it.
On Brexit and the position of London in the world, Jones stated that London’s role as the European financial centre appears to be over. However, the industry will make an effort to retain what it can regardless of the result of the Brexit negotiations.
Why Crypto Rocks
The U.K. financial chief expresses danger for the banking industry ahead of the Brexit deal. This dangers and fears are all allayed in the use of cryptocurrency. Digital currency offers a free world of transactions without external influence and breaks to its mode of operation.
Recently, the U.S. government shutdown affected the financial activities and benefits of some government workers due to the financial system control by the government. Respite to erratic financial system due to government influence is in cryptocurrency. The citizens of U.K. can take advantage of that ahead of the Brexit deal, and London can sure stand tall as the number 1 crypto hub in Europe with appropriate policies.