The Bank of England and the UK Treasury are considering introducing a 'digital pound' sterling, which would be the world's first national digital currency, amid a surge of competition in the digital currency industry. They also announced the formation of a new task force to develop a so-called 'Central Bank Digital Currency' or CBDC. Nonetheless, the concept is still in its infancy.
The UK chancellor Rishu Sunak opened the UK fintech week with a statement that the country "is already known for being at the forefront of innovation," but further steps are needed. "Our vision is for a more open, greener, and more technologically advanced financial services sector," he stated.
According to a recent opinion piece by Sam Ro, higher corporate taxes do not mean the end of bullish markets. In reality, there's no reason to think that higher taxes would lead to a drop in the stock market. Higher taxes are already on the list of known threats, and market participants shouldn't be surprised.
The threats that no one speaks about are the ones that might trigger volatility. Furthermore, higher taxes are unlikely to halt corporate earnings growth. Lori Calvasina of RBC Capital Markets believes that the stock market is rising to new highs due to investors repositioning tax hikes and factoring high tax policies into their strategies.
Coinbase is looking for a long-term game with its Nasdaq debut that took place last week when it comes to crypto. Some speculate that Brian Armstrong, Coinbase's CEO and Founder, is effectively selling out; after all, Coinbase was established to remove the need for a centralized structure, and it is now a part of it. However, Coinbase joining Nasdaq does not imply that it is now automatically a part of the conventional financial establishment. In addition, rather than selling out, Coinbase is taking the digital currency revolution into the old palace, giving its early investors a way out and paving the way for potential capital raises.