The Bank of England has announced a plan to launch its own Bitcoin-like cryptocurrency . The cryptocurrency called RSCoin will also function on Blockchain , the distributed ledger system on which Bitcoin and other cryptocurrencies are built.
Earlier, in January 2016, China’s National Bank also announced plans to launch a virtual currency. Radical Shift from Traditional Crypto
RSCoin was originally developed by researchers at the University College of London (UCL) which provides greater centralized control compared to BitcoinCT r: 8 and other cryptocurrencies.
The original paper published by the UCL researchers behind RSCoin explained: “ RSCoin’s radical shift from traditional cryptocurrencies is to centralize the monetary supply. Every unit of a particular currency is created by a particular central bank , making cryptocurrencies based on RSCoin significantly more palatable to governments. Despite this centralization, RSCoin still provides the benefit over existing (non-crypto) currencies of a transparent transaction ledger, a distributed system for maintaining it, and a globally visible monetary supply. This makes monetary policy transparent, allows direct access to payments and value transfers, supports pseudonymity, and benefits from innovative uses of blockchains and digital money.” In this case, the Bank of England would be the singular controller for the Blockchain and the encryption key that allows the subtraction or addition of the cryptocurrency from the Blockchain.
Matthew Commons, the CEO of Cambridge Blockchain LLC, explained: “ RSCoin is perhaps best described as a "hybrid" approach between the distributed model of bitcoin and conventional centralized fiat currency. In the hybrid model, a central bank delegates the authority of validating transactions to a number of other institutions that are called "mintettes"; they are known and can be held legally accountable for their actions. This test should help provide validation as to whether such an approach is sustainable and scalable.” Significance of RSCoin
Matthew Commons […]
