Bank of England Could Launch Its Own Cryptocurrency in 2018

According to a report in a leading British daily, the Bank of England may introduce its own cryptocurrency in 2018. Since 2015, the Bank of England has a research unit dedicated to cryptocurrency technology. The research unit is tasked to devise ways to link the Pound Sterling with the blockchain.

The report in The Telegraph states that the Bank of England is looking to develop their own cryptocurrency. The cryptocurrency would be based on similar cryptocurrencies such as Petro and Cryptoruble. The paper also reports that the Bank of England Governor, Mark Carney, has informed the Treasury Select Committee about his discussions with the heads of other central banks about bringing forward their own version of cryptocurrency. Not too long ago, Mr Carney confirmed that he was interested in cryptocurrency. He seemed to be particularly interested in the blockchain’s mechanism for delivery of cryptocurrency and the decentralized distributed ledger. He had reportedly informed British lawmakers about the benefits of the ledger, emphasizing the computational energy savings granted by it.

“You don’t end up with those financial stability risks, you get financial stability benefits. And you save huge amounts of computational energy intensity.”

In the summer of 2017, the Bank of England had run a pilot project. It involved the use of blockchain technology for settlements between central banks. The project had turned out to be a success. The Bank of England had also commissioned Dr. George Danezis of the University College London to install and devise a currency with assumed governmental backing. Their efforts culminated in the creation of RS Coin. RS Coin has helped central banks to efficiently determine and control the supply and circulation of money.

The paper concludes its report by saying that Mr. Carney currently thinks that the digital token would only be used between central banks. Still, the Bank of England is also looking at ways in which a suitable cryptocurrency could be put in use. But, it remains to be seen how banks react to this move by the Bank of England.

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