After the unexpected and enormous growth of Bitcoin during the last year, everyone have their eyes on cryptocurrencies these days. Some people are trying to buy some low value but extremely potential cryptocurrency so that they could earn multi-fold returns over the years.
If we talk about Ripple, then it proved to be the highest ROI provider of the last year and still in consolidating phase. Looking at this extreme potential of crypto space, many traditional institutions as well as investors have jumped into crypto space and some large institutions have also even introduced their own cryptocurrencies.
As per recent news, Bank of England is also considering to introduce its own cryptocurrency by the end of this year. Although banks and cryptocurrencies never had the co-ordial relations as they are mostly considered the opposite of each other but still after researching a lot about cryptocurrencies, Bank of England is going to introduce its own crypto.
But as per the Governor of Bank of England, Mark Carney, Banks follows a centralized system and for any kind of payment, some intermediaries are there to authorize that transaction but with the introduction of cryptocurrency, those intermediaries will not be needed at all and all the transactions can be processed peer to peer.
As per this Source, Carney also stated this :
You (could) create a situation where you can have an instantaneous (bank) run. So as soon as there were any concern, people can switch in their account at the Bank of England.
There are many talents of the Bank of England, but I think credit allocation across the entire economy would not be a good idea. So there are some fundamental problems if you push the retail design all the way down, unless you restrict the amount that people have.
Well, after reading these statements from Carney, it can be concluded that Bank of England (BOE) would introduce its own crypto but whether it would be centralized or not, its not confirmed yet.
Let's see what kind of crypto would that be.
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