If there is anything that cryptocurrency has shown us, it’s that is will have quite the impact on the standard financial system. Before this reality dawned on them, the Bank of England had big plans of developing their own cryptocurrency. Sadly, the U.K.’s central bank has since reported that they have no plans of launching their own cryptocurrency but are continuously researching the anomaly.
One has to wonder why the English government, who were once hands on deck over cryptocurrencies, has suddenly changed their minds. One has to wonder no more, as the Bank of England has stated that they dropped their plans amidst concerns that the general public would stop using the commercial banks and end up using their digital currency for every single transaction, even when it comes to much smaller purchases.
Their main concern lies with the fact that if the mass population jumps shift from the commercial bank to digital currency, the big move might cause the commercial banks to run out of money to lend. This would furthermore cause a rupture within the English economy. That’s something that no government sits down and looks forward to. That said, one can see why the UK would see cryptocurrency as a threat.
The Bank of England is steadfast with the thought that paper currency demands are elastic and can be manipulated with changes over the interest rates. They have stated that the blooming interest in cryptocurrencies will only weaken interest rates and financial stability. These realities have left England feeling rather concerned.
Trying to keep their composure for the masses, the central bank has recently taken back everything they’ve said and has stated that Bitcoin poses no real threat to the globes financial stability. Mark Carney, the central bank’s head has stated that cryptocurrencies recent price spike is significant, but an equity-type risk.