Coinbase recently announced that in the event of a no-deal Brexit they will be forced to transfer all services to within the EU leaving its huge army of UK investors scratching their heads.
While this is a minor inconvenience for its UK customers, there is a far bigger, global issue about to unfold and below we will try to explain why we think Brexit could be the catalyst XRP needs to moonshot.
Rocky Financial Road
Unless you have been living under a rock for the past four years you will be aware that the UK is leaving the EU on Halloween this year and a no-deal scenario is looking ever more likely.
Even the politicians have no idea what of the outcome in a no-deal situation but one thing is for sure the pound will drop dramatically which some say will trigger the next global recession.
And this reveals an uncomfortable truth: We’ve never faced a recession with so much debt and so little Fed ammunition available and with negative rates still in effect in many countries. There’s no playbook for this. Historic data may be of little predictive useCNN – READ MORE
Considering the entire blockchain ecosystem was born out for the ashes of the last financial meltdown of 2008 we decided to look into what may happen to altcoins like XRP.
And why we think overall this could be the catalyst it needs to reach epic pricing levels and cause the greatest transfer of wealth the world has ever seen.
In times of global economic downturn money always floods into Gold as investors pull their money from the usual commodities and companies.
This is what initiates the fear involved in any recession and when the hysteria reaches the general public, spending drops, jobs are lost and stock markets go into downward freefall.
Bitcoin was built on the ashes of the financial crisis to provide an alternative to fiat money run by governments and banks. If there was a catalyst that would make people question the role of these institutions then I can see them moving higher
Mati Greenspan – Financial Analyst
After the crash of 2008 Bitcoin and blockchain technology was introduced to offset the damage and loss caused by these recessions.
Bitcoin has been hailed as Gold 2.0 and it is generally accepted that when the next economic crisis happens, money will flood into Bitcoin and altcoins like XRP as billions scramble to save their wealth. READ MORE
Add to this that if the values of the £ and $ go into freefall, XRP investments would skyrocket in value anyway purely based on the diminishing buying power of this rapidly dying asset class.
Coinbase – A Sign of Things to Come?
Many analysts in the UK feel that a no-deal Brexit would literally rip apart the current infrastructure and long-held deals with EU companies.
Coinbase removing their services from the UK due to current banking agreements being torn up and thrown onto the fire is an excellent example of this oncoming financial onslaught.
In light of this (Brexit), we plan to transfer your current relationship with CB Payments, Ltd. to another licensed Coinbase entity within the EU
Coinbase Payments is currently a UK based institution dealing with all their digital asset transactions originating in the EU.
In the case of a no-deal Brexit Coinbase would by law only be allowed to process transactions of UK origin, forcing the company to seek new, more secure partnerships across Europe.