The Bank of England Might Soon Have Their Own Digital Currency

The Bank of England Might Soon Have Their Own Digital Currency

It is obvious to say that Bitcoin’s success has been an inspiration to more than just a few. According to a local newspaper, the Bank of England could soon be releasing its own digital currency, like Bitcoin. Since 2015, they have set up a research unit dedicated to linking a national cryptocurrency to sterling silver. Now, at the beginning of 2018, it’s looking like the project is well on its way.

Venezuela already has its Petro. Russia has the Cryptoruble. Now, we are left to wonder if England will make itself a “Britcoin” or “Ukoin”. According to an editor from the Telegraph, the answer is yes. He also adds that Bank of England Governor Mark Carney reportedly spoke at a meeting with the Parliamentary Finance Committee shortly before Christmas and that he had already had discussions with other central banks on the introduction of a digital currency.

A Major Player Who Believes in Bitcoin

Governor Carney, 52, is the first non-British to hold this title at the Bank of England. Former Governor of the Bank of Canada, he spent more than a decade at Goldman Sachs. A few days ago, Carney confirmed that he thinks Bitcoin is interesting, especially with its decentralized distribution technology. He isn’t worried about the distribution of digital currency to the public and says that this technology could have a beneficial effect on the stability of the entire country. He also states that although the Bank of England remains very active in this project, they have so far remained disciplined. “If we are going to introduce something new into the very heart of the system, it will be something showing a high level of quality.”

The Project So Far

The Governor ended his statements by saying “What I say about it today will be out of date in six months because things are moving very quickly.” And indeed, things are moving quickly into the new year. The Telegraph started their recent article with “The Bank of England will be able to give a green light to its own digital currency at the beginning of the year 2018…”

With more meetings plan in the new year, the Governor confirms that he has participated in discussions with other central banks about releasing their own digital currency. Last summer, the Bank of England had already used Blockchain technology as a test to see if it could be used as a means of settlement between central banking authorities. And, it worked well.

The Bank of England had asked Dr. George Danezis of the University of London to help develop a cryptocurrency for them. As a result, we say the birth of something called the RS coin and it seemed quite effective for the country’s banking system. With this type of technology, Central Banks could easily control the distribution of the currency at any time by controlling the amount in circulation.

According to the Governor, the currency would only be used between them and other central banks. The Telegraph also reports that the Bank of England has set up a research unit that is currently studying the possible introduction of a digital currency linked to the British Pound. With that being said, it is still hard to imagine being able to make big purchases such as buying a house with a digital currency.

So, will England be releasing its own Bitcoin this new year? We will just have to wait and see.

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