Ireland and Germany are set to compete with each other as they both attempt to take the top spot as Europe’s FinTech hub once the U.K. breaks away from the European Union, according to a co-founder and partner at B Capital Group.
In a report from CNBC, Raj Ganguly said that there is going to be an impact on the U.K. once it leaves the EU as a result of Brexit and that it looks as though London is going in the direction of a hard Brexit.
In the event of a hard Brexit, British financial institutions would lose their passporting rights, which currently permits banks in the U.K. to provide services across the EU without any restrictions.
He said:
I think it’s going to be a little bit of a battle between Ireland and Germany over who really steps up and takes the leadership role in fintech over from the U.K. post-Brexit.
Ireland: Potential to Become Global Hub
As a country that is continually working to establish itself as a global FinTech hub, the Blockchain Association of Ireland was launched with the intention of aiding groups in Ireland in areas focusing on smart contracts, FinTech, and digital currency.
While the Bank of Ireland, in partnership with Deloitte revealed early last year that it had successfully completed a joint proof-of-concept blockchain trial.
Additionally, in its commitment to Ireland’s FinTech potential, Deloitte opened a new blockchain lab in Dublin to cater for clients in Europe and the Middle East. The new lab is in Dublin’s ‘Silicon Docks’ district, a neighborhood that is home to several financial technology startups and industry giants such as Google and Facebook.
Germany: An Innovative Country
Germany, however, is also demonstrating that it has what it takes to become the next global hub with Frankfurt setting its sights on the top spot.
Not only that, but the country is showing its competitors such as London, New York, and Singapore that it has what it takes with 179 FinTech firms located in Berlin.
A collaboration between Canadian financial institution ATB Financial, German software multinational SAP, blockchain startup Ripple Labs and German bank ReiseBank AG, showed how the use of the blockchain could make an international payment in only 20 seconds compared to several working days.
Additionally, a bilateral research initiative has seen Germany and Austria funding a bitcoin financial crime research project designed to fight financial crime that uses digital currencies.
As to who of the two countries will take the top spot, if at all, remains to be seen, but in the last year or two VC funding has taken off for both countries, which could play a significant role post-Brexit.
Featured image from Shutterstock.
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