• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
Bank of England Nocoiner Admits ‘Cryptocurrency Not a Risk’
Advertisement

Bank of England May Issue Its Own Cryptocurrency

Jeff Francis by Jeff Francis
5 years ago
in News, Altcoins, Blockchain, News teaser
0
Advertisement

The Bank of England is compiling a report that may lead to it issuing its own cryptocurrency that would cut out the need for high street banks.


While Bitcoin and its cryptocurrency cousins sizzled in 2017, the new year should continue to see a lot of crypto action. An interesting development in the coming year concerns the Bank of England (BoE). The bank’s research unit has been studying virtual currencies since 2015, and the bank is now working on a report that could lead to the bank issuing its own cryptocurrency.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.

Cryptocurrency Based Upon the Value of Sterling

There’s no doubt that banks and Bitcoin don’t have the best relationship. This is understandable as banks rely upon central regulation and control while cryptocurrency features decentralized, peer-to-peer economic transactions. Poland’s central bank recently told citizens that cryptocurrency is “not money” in order to discourage the use of cryptocurrency.

Of course, banks do realize the potential that crypto’s underlying blockchain technology has to offer, and they want to take full advantage. Plus, they would love to cut out virtual currencies altogether and replace it with something they can control. The Bank of England is expected to release a report this year that could lead the bank to issue its own cryptocurrency, which would be tied to the value of sterling for its worth.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

The Drawback of Bank-Issued Cryptocurrency

According to bank governor Mark Carney, there is a potential fly in the soup when it comes to the Bank of England creating and releasing its own cryptocurrency. Central banks currently use electronic payments, but such exchanges are handled in a centralized fashion and across accounts at the central bank.

What Does This Mean, Exactly?

The trouble is that bank-issued cryptocurrency would allow people to skip the central intermediary and make instant payments to whomever they choose. The shared ledger of the blockchain would enable people to open accounts at any bank, at any time, and move their accounts if need be.

This open, instantaneous movement between banks with no central intermediary could have a major repercussion, which Carney noted by saying:

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

Carney went on to say that such a run could cause the BoE to gain a huge amount of deposits that it would then need to invest into different assets. He added:

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.

It is an interesting conundrum. A bank-issued cryptocurrency by the central bank could negate the need for high street banks, which are large banks that feature many locations. As many people are now using debit cards and making payments by using their smart phones, it’s likely most banks will eventually start cutting back on the number of physical locations. It’s the possibility of a run that has banks worried. It’ll be interesting to see if they come up some kind of mechanism to mitigate that possibility.

Do you think the Bank of England will issue its own cryptocurrency? Will banks muck up the current decentralized, P2P system crypto already has in place? Let us know what you think in the comments below.


Images courtesy of Wikimedia Commons, Pixabay, and Bitcoinist archives.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Jeff Francis

Jeff Francis

Related Posts

Blockchain

Blockchain For Traceability: Thailand’s Biggest Food Exporter Uses Tech To Monitor Goods

1 day ago
These Altcoins Could Be Ones To Watch For, Santiment Suggests

These Altcoins Could Be Ones To Watch For, Santiment Suggests

2 days ago
Aptos (APT)

Aptos (APT) Jumps 130% In 7 Days, What’s Driving The Price?

3 days ago
Polkadot Speeds Past Cardano To Become Top Crypto By Dev Activity

Polkadot Speeds Past Cardano To Become Top Crypto By Dev Activity

4 days ago
AI crypto token chatGPT

How ChatGPT Could Drive A Dramatic AI Crypto Token Narrative

5 days ago
Korean Financial Services Commission Chair Announces Security Tokens

Korean Financial Services Commission Chair Announces Security Tokens

1 week ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • Is Aptos (APT), Solana (SOL), or Snowfall Protocol (SNW)...

    8 hours ago
  • Hector Network launches its NFT marketplace on Fantom...

    8 hours ago
  • Fantom (FTM) launches ecosystem vault to finance dApp...

    9 hours ago
  • Esports Driving the Advancement of Cryptocurrency in Sports...

    23 hours ago
  • Connecting the dots on $PAW. Is Ryoshi back?

    1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.