A research unit established by the bank to investigate the possibility of issuing a cryptocurrency could report within the next 12 months, paving the way for the system to be introduced
With the massive increase in the popularity of cryptocurrencies, it seems that the United Kingdom could soon have its own bitcoin- type digital currency .
The Bank of England has established a research unit to study the possibility of issuing a cryptocurrency prototype, which could serve as rivals for Bitcoin and Ethereum .
The unit is expected to report within the next 12 months, although the end of the game is far from clear. According to local media, if the new digital currency reaches legal tender status, Bank of England Governor Mark Carney would prefer a restriction to limit use to transactions between central banks.
However, given that this would place the new digital currency under government regulation, it is uncertain whether it would still be considered a cryptocurrency, which is inherently free of regulation and control. The central bank could clone or improve bitcoin technology, but it could not duplicate the established cryptocurrency leadership in adoption and the large ecosystem of applications that have accumulated around it.
Public interest in cryptocurrencies has soared this year, but assets, largely unregulated, have attracted growing demands for rules to protect investors and safeguard established financial systems.
But if the Bank of England decides to go ahead with the idea of creating a Bitcoin- style currency , making it available for retail transactions, the new initiative will open the door for British citizens to keep their digital money with the central bank, regardless of the need. from a retail bank. The digital currency supported by the government, which has already carried out initial work in some areas, could facilitate a drastic change in the way financial transactions are carried out, which could then take place in nanoseconds.
Carney told a Select Treasury Committee before Christmas that he had “participated in discussions with the major central banks on this issue” and added that these meetings would resume in January. The head of the Bank of England also stated:
The underlying technology is really quite interesting. We are working with that at the Bank of England. The most interesting application that would be beneficial for financial stability and efficiency would be the use of blockchain technology for ‘settlements’ between central banks. We are in the case . “