Bank of England and House of Lords To Discuss Creation of BritCoin

By July 16, 2016Bitcoin Business

It is not the first time discussion arises over whether or not the United Kingdom should issue its digital currency. The House of Lords has scheduled a meeting with the Bank of England to explore the idea of creating BritCoin. As one would come to expect, BritCoin will be issued over a private distributed ledger, and has yet to be developed. BritCoin Concept Is Very Real

On Tuesday, July 19, 2016, Bank of England deputy governor of monetary policy Ben Broadbent will appear before the House of Lords. To be more precise, he will meet with the economic affairs committee and discuss the feasibility of issuing a national virtual currency. Moreover, they will also consider how this would affect the commercial banks throughout the UK.

A few months ago, Broadbent touched upon the concept of using distributed ledger technology for issuing virtual currency in the future. BritCoin, as this initiative has been dubbed, would let citizens hold virtual currency accounts with the Bank of England. There would be some drawbacks to this concept, though, as it may only be used for retail transfers. Another option worth exploring is whether or not these virtual currency accounts can pay interest.

At the same time, it is important to keep in mind the effect this may have on the commercial banks in the United KKingdom There is a positive side to this idea, as it would reduce mass cash withdrawals if the economy would go through a recession. Since everything would be taken care of in digital format, the impact on banks would be minimal. Keeping The Consequences In Mind

But there’s a drawback as well, as taking deposits away from banks may not be the best course of action in the long run. Doing so can make it harder for institutions […]

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