The pound’s decline paves the way for Bitcoin adoption in the UK

Global cryptocurrency adoption remains on course to reach approximately 750 million users by the end of 2023, according to Triple-A.

Per the report, the top five countries by the estimated number of holders are the U.S., India, Pakistan, Nigeria, and Vietnam at 46 million, 27 million, 26 million, 22 million, and 20 million, respectively. Vietnam’s ownership percentage came in at 26% of the population, with the U.S.’s at 13.2%.

The U.K. placed low, having just 3.7 million estimated holders, representing 5.5% of the population. But despite falling short on cryptocurrency adoption metrics compared to other countries, the U.K.’s ruling Conservative party has signaled its intent to incorporate digital assets into its economic plans.

In January, despite the fallout from the FTX collapse continuing to linger, Economic Secretary to the Treasury Andrew Griffith spoke about championing cryptocurrency and blockchain technology to bring about future economic benefits.

Griffith said he fully intends to turn the U.K. into an advanced financial center, which “absolutely [has] room” for cryptocurrency and blockchain technology.

The wording used by Griffith suggested cryptocurrency will play second fiddle to the pound. But reading between the lines, might Griffith be intentionally downplaying the importance of digital assets to the U.K.? Especially considering the pound’s decline.

The British pound

Historians noted that during Anglo-Saxon times, from 410-1066AD, one pound was the equivalent of a pound weight (454 grams) of silver, a considerable fortune at the time.

However, it wasn’t until 1815–1920 and the rise of the British East India Company, a trading body for English merchants, that the pound rose among global currencies rankings to assume the role of reserve currency.

Although the pound lost its reserve currency status to the dollar under the Bretton Woods agreement, it wasn’t until the 1970s, as U.S. President Nixon “suspended” the dollar’s convertibility to gold, that the pound’s decline became undeniably apparent.

In 1976, faced with a financial crisis, the U.K. government was forced to seek a $4 billion IMF loan. Contributory factors to the situation included a spiraling balance of payments deficit, excessive public spending, and the quadrupling of oil prices.

Adjusted for inflation, $4 billion in 1976 equals $21.03 billion in today’s money – a cumulative increase of 426% over 47 years.

The chart below shows a dollar was valued at…