Bank of England Will Not Rule Out Deploying a Cryptocurrency

Bank of England Will Not Rule Out Deploying a Cryptocurrency

Blockchain International Opinions
May 29, 2018 by Jaime Gutt
202
Mike Carney, the governor of the Bank of England, made some negative statements pertaining to cryptocurrencies and Bitcoin earlier this year. Before the G20 Summit which was held in Argentina, Carney came out and announced harshly that cryptocurrencies are essentially “Useless”. Nevertheless, Carney has taken a step back from his comments and has started looking
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Mike Carney, the governor of the Bank of England, made some negative statements pertaining to cryptocurrencies and Bitcoin earlier this year. Before the G20 Summit which was held in Argentina, Carney came out and announced harshly that cryptocurrencies are essentially “Useless”. Nevertheless, Carney has taken a step back from his comments and has started looking at digital assets with a bit more light. The governor recently announced in Stockholm, while on a panel, that he would consider, in fact, establishing a digital currency which would be issued by England’s central bank. He did point out, in addition, that cryptocurrencies are not playing the same role fiat currencies are in the present day, and that their usage is different even though plenty of people may have that misconception.

Carney’s retracted statements are reminiscent to the statements of many other finance figures from across the globe. A few months ago, JP Morgan Chase CEO Jamie Dimon issued a statement detailing how he had erred with his previous statements pertaining to cryptocurrencies, and that he now sees a bright future for the industry.

The Bank of England had announced previously that it wouldn’t want to launch a bank issued digital asset due to the potential and suspected ramifications it would have on the ordinary financial system. Furthermore, the bank pointed out that it may possibly lose its ability to use an interest rate policy if it would launch a cryptocurrency, thereby putting their financial stability at stake.

Carney further pointed out that there can be plenty of benefits for the banking systems if they alt to employ blockchain technologies. Back in April, the Bank of England deployed a Proof of Concept which analyzed methods for consumers to be able to transfer and share valuable information securely. The central bank then began using Chain, which provides Blockchain services and solutions. It will be fascinating to see how Blockchain technologies exponentially become more implemented in banking, business, and our daily lives.

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