Move over Silicon Valley!

By in banking, cloud, mobile, security, strategy on Tuesday, 2 June 2015

Could London overtake Silicon Valley as Crypto-currency’s centre of excellence?

Well, Visa thinks so. it hosted a gathering of crypto-currency start-ups and other interested parties to its Digital Catapult event in London recently.

Visa’s not alone in thinking this. An expert from the London School of Economics (LSE), one of the most respected financial academic centres in the world believes it too. They even put a date on it – 2020.

Crypto-currency set to explode?

Investment in crypto-currency start-ups in 2015 could even beat the dotcom frenzy of a few years ago.

A technology called Blockchain has the potential to transform the future of payments in the banking sector – it may even transform way we cast and count our votes in the 2020 General Election.

Financial observers have been waiting for the next big thing for a while now. Mobile payments has failed to catch the imagination of consumers, despite the presence of heavyweights like Google with Google Wallet and Apple with ApplePay, its not seeing the level of growth that the hype suggested. Maybe crypto-currency will.

Visa meets the future

Visa’s Europe Collab launch start-up innovation hubs in London and Israel are there to spot and engage with Europe’s top financial technology entrepreneurs, as the UK is now Europe’s fastest growing region for fintech with over 135,000 employees. Deal-volume, mostly out of London, has been growing at an annualized rate of around 74% since 2008, compared with 27% globally, and 13% in Silicon Valley, according to Accenture.

Speakers at Visa’s London event included leading monetary academic Garrick Hileman from the LSE, Hendrik Kleinsmiede of Visa Europe Collab one of Europe’s crypto-currency and Blockchain gurus in the financial services sector and Nicolas Cary, co-founder of Blockchain, one of the world’s best known BitCoin wallet company.

According to Garrick Hileman of the LSE, “BitCoin is in a battle with more than 600 crypto-currencies. The governance structure in Europe and the US surrounding BitCoin may be an inhibitor to expansion for crypto-currencies whilst it may flourish in fertile territories like Sub Saharan Africa with over 50% of BitCoin mining being provided by China.”

The UK is leading the way

Sian Jones of COINsult feels “The UK is the only jurisdiction that is coming out with a holistic approach to digital currencies regulation.”

While according to Hendrik Kleinsmiede of Visa Europe Collab, “The level of investment in crypto-currencies is at an unprecedented high – to date over $667million. If you compare 2014 to 1995 at the beginning of the dotcom boom, there’s now more money being invested in crypto-currency than there was in dotcom.”

Will the Banks jump in?

Nick Cary of Blockchain noted “Banks are being exceedingly cautious but by summer there should be new policies in place to make it easier for BitCoin companies to operate in Europe and the US.

The US is seeking a compliance pathway for Bitcoin start-ups, with New York setting the future as the model for regulation of Bitcoin “banks.”

Great news, but let’s not forget what became of the dotcom boom…

#MoveOverSiliconValley

visa

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