Bank Of England Has Not Closed The Door On Bank-Run Cryptocurrency
The possibility of a central bank-issued cryptocurrency is still open to the Bank of England, even though it has earlier revealed such a move.
The governor of the Bank of England, Mark Carney, addressing a panel in Stockholm on the future of banks, noted he will contemplate issuing a cryptocurrency by the central bank but that is not an urgent concern. His reiterated statements made earlier on state at the present time, cryptocurrencies are not acting as money.
The bank had noted earlier this year that, it will not introduce a bank issued cryptocurrency based on the fact that there is a possibility of consequences on the financial system. The bank which has been finding out about cryptocurrency since 2015 finally decided that customers will choose its cryptocurrency and close their commercial bank accounts, inflicting chaos on the financial system.
Concerns were also raised by the bank regarding its chances of losing the ability to use it interest rate policy to sustain financial consistency if it launched a bank issued cryptocurrency.
Carney regardless went on to note that there are benefits to launching a blockchain technology for central banking. He claimed it provides financial stability and saves a lot of computational energy output.