Industrial Strategy Report

Over the last decade, technological changes have transformed the way we transact, do business and live. Every interaction with our smartphones or an online purchase is testament to the remarkable impact of technology.The rise of crypto-assets and blockchain technology opens a new chapter for the digitization of the UK economy, offering unparalleled opportunities for innovation, investment and inclusive growth.We stand at a pivotal moment in the evolution of digital assets and crypto technology. Adoption is increasing globally, and growing year-on-year in the UK, as recent FCA reports have evidenced; now 1 in 8 Britons own crypto, and 93% of adults are aware of the technology.

Furthermore, there is a deeper appreciation now of the transformative potential of the technology not only to update payments and capital markets via tokenisation, but also to provide a new infrastructure layer for a future internet that empowers users through data ownership and agency. We also increasingly recognise the powerful and synergistic role that blockchains can play in the rollout of AI to both authenticate AI content and also provide the wallets and payment rails to underpin the development of agentic AI in which bots will execute tasks based on users’ expressed intent.

Finally, but importantly, the recent election in the largest economy in the world will result in the US now moving quickly and assertively to drive innovation in this space and to attract investment.For all these reasons and more, we believe the UK can no longer stand on the sidelines and must not get left behind. We must prioritise bold and timely political and regulatory action to develop a world-leading environment for digital assets that attracts investment, and fosters innovation, in order to drive the Government’s vital growth agenda.Digital assets and crypto are essential components of the fintech pillar within the overall industrial strategy, and we stand ready to support the Government as it drives its growth agenda forward.