In a recent statement, the Director of the Bank of England (BOE), Mark Carney,
announced his support for the creation of a cryptocurrency backed by the banking
This announcement was communicated during the RiksBank conference in Switzerland. Although this potential BOE cryptocurrency will not be issued any time soon, it will
establish the presence of the United Kingdom as part of the crypto-community and may generate more reliable means for electronic transfers.
However, before taking the first steps, Carney emphasized the need to conduct a study of the current market terrain. The economy in the United Kingdom remains in a state of readjustment, so the appearance of new digital financial currency, such as cryptocurrencies, may help the region’s economic growth. According to Carney,
“A more disordered transition, or a final state materially different from our
assumption, will have implications for monetary policy. Although the exact policy
response can’t be predicted in advance, viewers know from our track record that,
in exceptional circumstances, both of us are willing to tolerate some deviation
from target inflation for a limited period and there are limits to that tolerance “
Despite the present problems, Carney remains optimistic about what a BOE cryptocurrency will bring and how it will benefit banking entities.
Recently, investigations have been launched into around 20 companies associated with
cryptocurrencies. These investigations are being carried out by the Financial Conduct
Authority (FCA), and are looking into the trends of these businesses who may have been
reported as illegal, after ignoring the legal registration process.
by Samuel Paz