The Bank of England yesterday told Financial Times Adviser that plans for issuing its own crypto currency were finally shelved. Those responsible fear otherwise of significant negative effects on the British financial system, which could destabilize them.
In summer 2016 research results were published by the Central Bank of London according to which a digital currency of its own could have a positive effect on Britain’s gross domestic product. The traceability of the transfers also increases the transparency of the cash cycles. The banks of the UK, on the other hand, expressed their concerns last year to lose large amounts of capital to this new market.
The announcement comes three days after the announcement that a UK central bank research unit is investigating its own cryptocurrency , which should be closely linked to the British pound. The research results are expected at the earliest in one year.
According to the spokesman for the FT Adviser had given up the plans, because it would allow citizens rather than with their checking accounts mostly on transfers by crypto currency. In the case of a state digital currency, consumers could also stop paying for their purchases the traditional way. Unless the banks had any funds left, there would be no more money for loans, which would have serious negative consequences.
IThere are concerns about the extent to which one can influence the course of a separate crypto currency at all. In addition, one feared by losing control of the British pound. This should be prevented, especially since the control of the regular currency is currently possible by simple means. In the case of interest rate increases, all new loans automatically become more expensive and the population’s willingness to spend decreases.
Recently, the head of the central bank, Mark Carney, told the press that digital currencies would not pose a risk to international financial stability. Although the price gains in December of the previous year were ” significant “, they would be very similar to the enormous fluctuations in equities or other speculative commodity futures.
For now, there is no intention of eventually spending their own digital currency.
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