Bank of England to Beat Bitcoin with Rival Cryptocurrency Coming Out in 2018
- A research unit is expected to report on the matter within the next 12 months, though the endgame is far from clear.
With the massive surge in the popularity of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, it appears that the United Kingdom might soon have its very own Bitcoin-like digital coin, according to a report in The Telegraph.
The Bank of England has established a research unit to probe the possibility of issuing a prototype cryptocurrency, which could serve as a rival to the likes of Bitcoin and Ethereum.
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The unit is expected to report back within the next 12 months, though the endgame is far from clear. According to local media, if the new digital currency does achieve the status of legal tender, BoE’s governor Mark Carney would prefer a restriction to limit use to transactions between central banks.
However, since this would place the new digital currency under government regulation, it is uncertain if it would still be considered a cryptocurrency, which is inherently free of regulation and control. The central bank could clone or improve on Bitcoin’s technology, but it may fail to duplicate the cryptocurrency’s established lead in adoption and the large ecosystem of applications that have been built up around it.
Public interest in cryptocurrencies has exploded this year, but the largely unregulated assets have drawn increasing calls for rules to protect investors and safeguard the established financial systems.
But if the BoE decides to go through with the idea of creating a Bitcoin-style currency, making it available to retail transactions, the new initiative will open the door to British citizens to keep their digital money with the central bank, dispensing with the need for a retail bank. The government-backed digital coin, which has already carried out initial work in some areas, could facilitate a drastic change in the way financial transactions are conducted, as they could happen in nanoseconds.
Mr. Carney told a Treasury Select Committee before Christmas that he had “participated in discussions with the major central banks on this issue,” adding that those meetings would resume in January. The head of BOE also stated: “The underlying technology is actually of a fair bit of interest. We are working with it at the Bank of England. Most interesting application that would be beneficial for financial stability and efficiency would be using the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology for ‘settlements’ between central banks. We are on the case.”
With the massive surge in the popularity of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, it appears that the United Kingdom might soon have its very own Bitcoin-like digital coin, according to a report in The Telegraph.
The Bank of England has established a research unit to probe the possibility of issuing a prototype cryptocurrency, which could serve as a rival to the likes of Bitcoin and Ethereum.
Discover credible partners and premium clients at China’s leading finance event!
The unit is expected to report back within the next 12 months, though the endgame is far from clear. According to local media, if the new digital currency does achieve the status of legal tender, BoE’s governor Mark Carney would prefer a restriction to limit use to transactions between central banks.
However, since this would place the new digital currency under government regulation, it is uncertain if it would still be considered a cryptocurrency, which is inherently free of regulation and control. The central bank could clone or improve on Bitcoin’s technology, but it may fail to duplicate the cryptocurrency’s established lead in adoption and the large ecosystem of applications that have been built up around it.
Public interest in cryptocurrencies has exploded this year, but the largely unregulated assets have drawn increasing calls for rules to protect investors and safeguard the established financial systems.
But if the BoE decides to go through with the idea of creating a Bitcoin-style currency, making it available to retail transactions, the new initiative will open the door to British citizens to keep their digital money with the central bank, dispensing with the need for a retail bank. The government-backed digital coin, which has already carried out initial work in some areas, could facilitate a drastic change in the way financial transactions are conducted, as they could happen in nanoseconds.
Mr. Carney told a Treasury Select Committee before Christmas that he had “participated in discussions with the major central banks on this issue,” adding that those meetings would resume in January. The head of BOE also stated: “The underlying technology is actually of a fair bit of interest. We are working with it at the Bank of England. Most interesting application that would be beneficial for financial stability and efficiency would be using the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology for ‘settlements’ between central banks. We are on the case.”