UK Trade Groups Urge Government to Prioritize Blockchain and Crypto for £57 Billion Economic Boost

A coalition of leading UK digital economy trade groups has urged lawmakers to enhance support for blockchain and digital asset technologies. The coalition, which includes the UK Cryptoasset Business Council, techUK, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, and the Crypto Council for Innovation, sent a letter to Varun Chandra, the Prime Minister’s special adviser on business and investment, on 31 March. The letter called for a greater strategic focus and alignment to deliver investment, growth, and jobs in the UK’s digital asset sector.

The trade bodies emphasized the urgency of the situation, citing recent geopolitical events and the global digital race underway. They highlighted that governments like Singapore, the UAE, and China Hong Kong are rolling out national strategies to attract blockchain businesses. The coalition warned that the UK must stay flexible and proactive to avoid falling behind in this competitive landscape.

In their letter, the coalition proposed the appointment of a blockchain-specific special envoy, similar to the US’s “crypto czar.” This envoy would coordinate policy, foster innovation, and act as a global ambassador for the UK. The move is seen as a signal of serious commitment to international investors, helping to keep the country at the forefront of blockchain development.

The coalition also urged the government to develop a dedicated ‘Government Action Plan’ for blockchain and crypto. This plan would involve identifying key growth areas, providing public sector support, and creating a concierge-style service to help high-potential startups scale in the UK. The groups stressed the need to recognize the growing synergy between blockchain, AI, and quantum computing, arguing that leveraging these technologies could unlock major advances in transparency, productivity, and decentralization across industries.

To support smart regulation, the letter recommended creating a high-level industry-government-regulator forum. This forum would ensure cross-sector collaboration, informed policymaking, and a more forward-thinking approach to blockchain development. The coalition highlighted the UK’s deep pools of talent, access to capital, world-class academic institutions, and sophisticated regulators as creating a suitable environment for blockchain innovation to thrive.

The coalition estimates that blockchain could boost the country’s economy by £57 billion over the next decade and contribute to £1.39 trillion in global GDP by 2030. The letter closed with a call for a meeting to discuss the proposals, underscoring the importance of prioritizing these technologies as a strategic priority for the government.

The call to action from these trade bodies comes at a time when digital innovation is rapidly transforming traditional industries. Recognizing the strategic importance of digital assets and blockchain technologies is crucial for the UK to remain competitive in the global market. By prioritizing these technologies, the government can create an environment that fosters innovation and attracts investment, ultimately driving economic growth.

The trade bodies have also highlighted the need for a coordinated approach to regulating digital assets and blockchain technology. They have called for the development of a regulatory framework that balances innovation with consumer protection. This framework would provide clarity for businesses and investors, enabling them to operate with confidence in the UK market.

In summary, the UK trade bodies' call for the government to prioritize crypto and blockchain policy reflects a growing recognition of the potential benefits of these technologies. By appointing a dedicated envoy, developing a comprehensive action plan, and creating a supportive regulatory framework, the UK can position itself as a leader in the digital economy. This proactive approach will not only drive economic growth but also ensure that the UK remains at the forefront of technological innovation.