Creating the new “Financial Capital of the World” seems to be an uphill battle, but that isn’t keeping Luxembourg from giving it a shot. Most people can’t even point out this tiny nation on a map of Europe, but Luxembourg wants to be the European location of choice for global financial services. Who needs a financial capital when there is Bitcoin?
Luxembourg Eyes London’s FinTech Crown
One thing Luxembourg has going for it is its status of the biggest centre for fund management within the European Union. This announcement couldn’t have come at a more opportune time, even though taking the crown from London as being the FinTech hub of Europe will prove to be quite the challenge.
That being said, more competition in the European financial services sector is never a bad thing. Through competition, there will be innovation and the end user will be the one benefiting the most. Several industry experts have high hopes of making Luxembourg the destination of choice in the EU for international investors.
There are several factors to take into account as to why this plan might actually work. First of all, Luxembourg offers a physical environment for financial technology business to innovate. Secondly, the country is home to interesting regulatory measures as far as FinTech is concerned. Lastly, Luxembourg is well-known for its investment environment.
Even though London firmly remains the biggest financial centre in Europe, and depending on whom you pose the question to, even the world. However, there is the looming threat of Great Britain leaving the European Union altogether, and that decision would heavily impact London’s image as a financial hub.
But that is not the only threat to London’s “crown”, as trouble is brewing within the UK as well. From the look of things, the country might be faced with higher taxes and even tighter regulation of the financial sector. It goes without saying that neither of these events would be favorable to international investors.
Unlike its British counterpart, Luxembourg is often praised of its transparency in the financial sector. In fact, the country’s financial industry achieved a global role without being covered by [too much] banking secrecy. In fact, any level of secrecy is hurting Luxembourg’s wealth management industry more than any other country in the EU.
Bitcoin Renders The Entire Discussion Moot
As entertaining as this entire discussion is to a lot of people, there shouldn’t be a “financial capital of the world” in the first place. There is enough money in the world to make life comfortable for everyone and Bitcoin is trying to point that out. In fact, Bitcoin is the only currency that can operate on a global level without having a “capital” to begin with.
The FinTech sector is a source for many innovations and we can only be glad such an industry exists. However, it is time more people start to realise that any form of centralization is no longer viable, nor important. Finance is a matter that is near and dear to everyone on this planet, and embracing Bitcoin will resonate that sentiment.
What are your thoughts on this story? Let us know your thoughts in the comments below!
Source: Telegraph UK
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