Zumo: UK election should be championing alternative financial solutions

credit: Shutterstock
credit: Shutterstock

Ahead of the UK election, Edinburgh-based cryptocurrency company Zumo has revealed young adults are clamouring for more discussions surrounding crypto. 

According to research commissioned by Zumo and conducted by Focaldata, more than a third of UK young adults believe crypto is an important electoral issue, with 34% of 18-24 and 25-34-year-olds stating crypto should be at the forefront of politicians’ minds. 

A quarter of all adults (and 44% in London, a prominent fintech hub) think it’s now important for economic growth that the UK strengthens its position as a digital assets hub, with the figure rising to four in ten 18-24-year-olds (42%) and 25-34-year-olds (41%). 

Nick Jones, Founder and CEO, Zumo, commented: “As crypto moves mainstream, it’s clear from our findings that the nation’s young adults are keen for it also to move up the political agenda.

“Given the widespread recent turmoil in the traditional financial system, the UK should be championing alternative financial solutions, not panicking and likening them to gambling – as we’ve seen in recent press coverage. A resilient future financial system should look to incorporate new ideas and structures that provide added value for consumers.”

Zumo and public opinion research company Focaldata’s poll of more than 3,000 UK adults also showed 38% of 18-24-year-olds have invested in cryptocurrencies themselves, whilst 40% (and 37% of 25-34-year-olds) know friends and family who hold crypto. 

A similar proportion (39%) of 18-24-year-olds (and 37% of 25-34-year-olds) see the nascent sector as a pathway to higher long-term returns on their investments. 

However, a third (32%) of both 18-24 and 25-34-year-olds say they are now concerned about the sector’s future prospects, given a number of crypto-friendly MPs have confirmed they are standing down at the election.

Crypto adoption in the UK has grown exponentially over the last several years. The Conservative Party has also placed a closer emphasis on digital asset development also, with PM Rishi Sunak aiming to make the country a digital hub for technological innovation. 

The Financial Conduct Authority and Bank of England launched the Digital Securities Sandbox earlier this year, the London Stock Exchange listed the first crypto ETPs on a UK exchange last May and the country is edging closer to finalising a regulatory bill surrounding stablecoins. 

However, upon its findings in its recent research, Zumo believes that more open discussions are still to be had in order to realise crypto and digital assets’ potential as part of the wider UK financial system. 

Jones continued: “Moving forward, we’re keen to see the government and the regulators working in step with the industry to implement an appropriate regulatory framework that will help the digital assets sector reach its full potential as a growth driver for the UK economy.”