With the price of cryptocurrencies maintaining an upward trend throughout 2017, a reality that does not seem to be different this year, the governments of several countries are still concerned about the expansion of assets such as Bitcoin, and are resorting to radical measures to financial level backed by Blockchain technology.
We have seen cases such as Russia and Venezuela, which recently announced the creation of their national cryptocurrencies, and now, the United Kingdom has expressed a particular interest in the possibility of launching its own cryptocurrency through its central bank, despite the fact that It seems that this alternative will remain in analysis for some time.
A research unit established by the Bank of England (BoE) is analyzing the introduction of a cryptocurrency linked to the pound sterling. The team involved is expected to report within the next 12 months, according to a report in the Telegraph newspaper.
If approved, the cryptocurrency issued by the central bank would allow British users to keep their digital money in the central bank, eliminating the need for retail banks. The system would also allow for large transactions almost instantaneously, according to the report.
BoE Governor Dr. Mark Carney spoke with the Select Committee of the Treasury of England in December, saying that he has participated in talks with the main central banks on the launch of the digital currency, adding that last summer the BoE had carried out a successful test on the Blockchain technology. In this regard, he affirmed:
The underlying technology [Blockchain] is actually a bit interesting. We are working with her at the Bank of England.
In addition, he said that the use of Blockchain technology for settlements among central banks would be the "most interesting application" that would benefit stability and financial efficiency.
As it became known in September 2017, Simon Scorer, BoE researcher, has publicly commented on the design requirements for a digital currency issued by the central bank, saying that he would need "extraordinary levels of resistance" against a series of problems.