The cryptocurrency craze of 2017 does not look like it is going to fade out anytime soon. The Bank of England (BoE) recently announced that its senior executives have been hold discussions regarding the possibility of introducing their own version of a cryptocurrency similar to bitcoin.
The BoE has set up its own internal research unit who will study the cryptocurrency market and then decide if the central bank can introduce its own cryptocurrency before the end of 2018. Should the BoE decide to launch its own cryptocurrency, it will cause a revolutionary change in financial markets all across the world and transform the way high street banking operates in the future.
If the BoE introduces its own cryptocurrency, Britons would no longer be required to use the pound sterling and would be able to store all their money in digital form and complete transactions such as buying real estate in a few seconds. The BoE apparently established its research unit in 2015 and they have been studying cryptocurrency technology and security for the last couple of years. They are expected to submit a report before the end of this year.
There are a number of countries who have shunned cryptocurrencies due to the risks involved. Philip Lowe, who is the governor for the Reserve Bank of Australia is one of those individuals who is not impressed with the cryptocurrency market and does not believe that it will be a mainstream currency.
In a statement, Lowe said
When thought of purely as a payment instrument, it seems more likely to be attractive to those who want to make transactions in the black or illegal economy, rather than everyday transactions. So the current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment
Mark Carney, the governor for the BoE does not share Lowe’s views. Carney said that he had been in discussions with other central banks about the possibility of introducing an official cryptocurrency. Carney told the Treasury select committee that these discussions will continue into 2018 while the BoE continues to test blockchain technology.
The BoE has already carried out a few transactions known as ‘distributed ledger’ which is based on blockchain technology. The BoE believes that this technology can be used by central banks across the world to carry out financial settlements.
