Crypto-friendly Rishi Sunak wins race to become next UK PM

LAGOS (CoinChapter.com) — Rishi Sunak has been declared as the next leader of the Conservative Party by the head of the 1922 Committee of Conservative legislators, placing him on course to be the country’s next UK prime minister.

In an interesting turn of events, Sunak, the former chancellor, clinch the prime minister job after former prime minister, Boris Johnson, and Leader of the House of Commons Penny Mordaunt pulled out of the contest to replace Liz Truss.

Mordaunt in a statement disclosed that she pulled out of the race for the unity of the party. She said, “We all owe it to the country, to each other, and to Rishi to unite and work together for the good of the nation.”

Similarly, Johnson in a 300-word statement stated that even if he could win the contest, he didn’t have enough support among Tory MPs to govern.

“I am afraid the best thing is that I do not allow my nomination to go forward and commit my support to whoever succeeds. I believe I have much to offer but I am afraid that this is simply not the right time.”

Boris Johnson said.

Recall that Sunak missed out on the leadership in the summer in defeat to Liz Truss. However, she was forced to resign after launching an economic program that triggered turmoil in the UK’s financial markets. Meanwhile, experts have speculated that Penny Mordaunt quit the race because she was unable to secure the backing of 100 Tory MPs to take the contest to the next level.

While Sunak boasts 185 Tory backers, Mordaunt only secured about 26. It is worth noting that Boris Johnson gathered about 60 supporters before his withdrawal.

ALSO READ: Liz Truss Resigns As British Prime Minister After Only 44 Days

Jeremy Hunt, the present chancellor endorsed Sunak, comparing him with Winston Churchill in his willingness to speak the “truth.” Former Home Secretary Priti Patel, among other top Tory members also declared their support for Sunak. Worthy mentions include Kemi Badenoch, James Cleverly, Michael Gove, Gavin Williamson, and Nadhim Zahawi, among others.

Liz Truss, who resigned as prime minister days ago, has congratulated Rishi Sunak on being appointed leader of the Conservative Party this afternoon. Truss and Sunak had campaigned against each other in the race to replace Boris Johnson over the summer, with Truss coming out on top.

Furthermore, they are billed to meet King Charles III who is scheduled to travel to London today from his private royal estate of Sandringham. It is expected that Charles will accept the resignation of Truss and simultaneously accept Sunak’s appointment as her successor.

Who Is Rishi Sunak?

Rishi Sunak is an Oxford University, Stanford graduate married to Infosys co-founder Narayana Murthy’s daughter Akshata Murty.

His family migrated to the UK in the 1960s, a period when many people from former British colonies arrived to help rebuild the country after the Second World War.

Rishi Sunak was born in Southhampton, UK. He is the son of a pharmacist mother and a National Health Service general practitioner father. He became a member of Parliament (MP) in 2015 after he got elected from Richmond, Yorkshire.

In February 2020, he was designated as the Chancellor of the Exchequer, the most important UK cabinet post. In addition, Rishi Sunak is widely appreciated for his economic package for employees and businesses during the COVID-19 pandemic.

Sunak is crypto-friendly and wants Britain to be a “global hub” for digital assets. Earlier this year, the former chancellor canvassed support for crypto adoption through his official Twitter account. He said:

“We see enormous potential in crypto. […] We have a detailed plan . . . we are, I am, determined to learn quickly . . . and the government will lead the way in harnessing the potential of blockchain and supporting the development of a world-best crypto ecosystem.”

If chosen, Rishi Sunak would be the UK’s first prime minister of Indian ancestry.

Pound Makes Gains Against US Dollar

Meanwhile, the Pound Sterling rose around 0.4%, at $1.1, after Rishi Sunak emerged as the favorite to become the new prime minister. This was just as the British government borrowing costs dropped as the markets opened after the weekend.

Mainly, the interest rate on bonds due to be repaid in 30 years dropped almost 4%, making government borrowing cheaper. Recall they had hit 5.17% on September 28 in the aftermath of the mini-budget launched by Kwasi Kwarteng.

The former chancellor had set out one of the biggest tax cuts packages seen in decades but did not explain how they would be funded.

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