There is a growing interest in distributed ledger technology and digital currencies by central banks and other financial institutions all over the world. The Bank of England is looking to issue their very own digital currency – called RScoin – shortly, and has asked a team of researchers to make it happen. Centralized versions of Bitcoin are on the horizon, it seems, but can such a concept be even remotely successful?
Also read: Bitcoin Price Technical Analysis for 03/10/2016 – Ready for a Big Breakout? Private Centralized Bitcoin Clone for Bank of England
For many years now, banks and other major financial players have been opposing the idea of Bitcoin and digital currency, because it was “too dangerous for consumers to get involved in”. However, that stance changed over a year ago, when these same parties started taking a keen interest in private blockchains to enhance their infrastructure. By the look of things, some banks want to take matters one step further and issue their centralized version of Bitcoin .
Whether this means central banks are now trying to ride on the popularity coattails of Bitcoin, remains unknown at this point. But after being very vocal about the negative aspects of digital currency for so long, it is quite telling they want to introduce their very own form of Bitcoin at this time. But there is a significant difference between Bitcoin as people know it, and what Bank of England wants to achieve. Centralizing digital currency is an interesting approach, but there are a lot of questions regarding its viability. There are a lot of benefits to using digital currency and distributed ledgers, though, as it would make retail payments more efficient and strengthen the financial system in general. Moreover, transactions will become far less costly between banks […]
