The United Kingdom could launch its own cryptocurrency during the current year. According to The Telegraph, the Bank of England could release a digital currency as early as 2018 that would be linked to the sterling. With this new virtual currency, the Bank of England would allow British citizens to keep their money in digital form with the central bank itself and to process big transactions in nanoseconds.
A Long-Time Planned Cryptocurrency
The possibility of issuing a national virtual currency has been in the bank’s plans for a long time. There is a research team that has ben studying the matter since 2015. The intention is to create a cryptocurrency backed by the Bank of England and tethered to the pound sterling. The bank aims to provide United Kingdom’s citizens with a virtual currency without the volatility of Bitcoin.
Dr. Mark Carney, Governor of the Bank of England, said:
“The underlying technology is actually of a fair bit of interest. We are working with it at the Bank of England. I have participated in discussions with the major central banks on this issue.”
For Mr. Carney, the “most interesting application that would be beneficial for financial stability and efficiency”, would be using blockchain technology for settlements between different central banks. We have written at UseTheBitcoin how Ripple is working with dozens of central banks from all over the world to implement its network among them.
The Bank has carried out a successful test using distributed ledger technology the past summer. This test has demonstrated the viability and advantages of making payments between two central banks with blockchain technology.
Not The First National Cryptocurrency
Different countries and central banks are analysing the possibility of issuing virtual currencies. As we have reported, the Canadian Central Bank was studying this possibility with specialists in the field.
Venezuela, Russia and Kazakhstan are also included in the list of countries with a high possibility of issuing a cryptocurrency during this new year. Russia has proposed the ‘CryptoRuble’, Venezuela ‘the Petro’ and Kazakhstan a commodity backed virtual currency.