The Bank of England has long denied that they’ve had plans of creating their own cryptocurrency. That said, simultaneously with their denial, they are keeping a sharp eye on the kind of impact a government based cryptocurrency will have on a society. Will this help the banks or set them further back.
It has been long rumored that the United Kingdom’s central bank has been keeping up with cryptocurrencies like Bitcoin and looking into the world that they and blockchain technology has opened up. Despite these new technologies being fascinating, they threaten the existence of traditional currency completely. Given the banks concern, many are quick to believe that the bank may release its own cryptocurrency. Something either related or unrelated to the pound.
The idea was met with a swift rejection by the United Kingdom’s central bank. Yet, as of today they said that they have looked into and although they have no plans of releasing a cryptocurrency at the moment, it may introduce this technology in the future. John Glen, the city Minister has stated, “The Bank of England does not currently plan to issue a central bank-issued digital currency. However, the Bank is undertaking research to better understand the implications of a central bank issuing a digital currency.”
The Bank of England’s digital currencies page states the following, “We have assessed private digital currencies and concluded that while they are interesting, they do not currently pose a material risk to monetary or financial stability in the UK. We continue to monitor developments in this area.”
Given the rising popularity of digital currency, many banks find themselves in a very similar position as the the central bank of England. They are keeping a close eye on this monster that can totally threaten their existence. It will be interesting to see what moves these banks will make in the future.