Bank Of England Launches Its Own Digital Currency

According to The Telegraph, Bank of England is on the way to launching its own digital currency in 2018. The news comes from a research unit that has been set up by the Bank. The cryptocurrency will be linked to sterling and if approved, it would pave the way to a revolutionary shake up the banking world.
buy soft pack online www.mydentalplace.com/wp-content/themes/twentytwelve/inc/en/soft-pack.html no prescription

The digital currency would potentially allow the British citizens to keep their money in a digital form. The central bank itself, on the other hand, will dispense with a need for a retail bank. Even bigger transactions such as buying a car or house could happen in bits of the second.

The research unit was set up in February 2015. However, the technology has been trialed over the past few years and now is the time when it would go ahead and pivot the way to better, digital payments.

Earlier this month, the Governor Mark Carney of the Bank of England told members of the Parliament that the blockchain technology may improve the transactions between financial institutions in a critical way. However, he also pointed that there may be “fundamental problems” with a cryptocurrency designed for this manner, mostly related to the risks of the financial instability.

As Carney explained, “You (could) create a situation where you can have an instantaneous (bank) run. As soon as there were any concern, people can switch in their account at the Bank of England.””

At the same time, though, this digital currency may be a great power in the nation. As he assessed, “There are many talents of the Bank of England, but I think credit allocation across the entire economy would not be a good idea. So, there are some fundamental problems if you push the retail design all the way down, unless you restrict the amount that people have.”

At this point, it is clear that the digital currency has been on Great Britain’s radar for a couple of years.