You will possibly have an opinion on the Governor of the Bank of England if you have an interest in financial matters, for he isn’t afraid of speaking his mind, and whilst many people do not like him, there are a very large number of people who do!
I have however been somewhat amazed by the revelation today from Mark Carney that the Bank of England set up a research group to look into the possibility of the Bank of England launching its own digital currency!
My amazement has been due to the fact he has been in no uncertain terms, talking down digital currencies for quite some time now, and I was under the impression that he neither saw the virtues of digital currencies or the security and flexibility that they offer users.
But you do have to admire the fact that he is taking digital currencies such as Bitcoin seriously, and one thing he will no doubt have been very interested in are the very low costs associated with running a digital currency.
Much more so when you take a look at the very rising costs of fiat currencies, and the way that they are used in our daily lives. Fiat currencies do of course call for a massive infrastructure in regards to storing them, moving them around and even printing the banknotes and making the coins too, and those costs can and do run into Billions of Pounds.
Whilst at this moment in time there are no certainties that the Bank of England will launch its own digital currency, what he and his research group may be looking at it using a digital currency that is linked into the value of GBP, and offering it alongside Britain’s fiat currency.
That way the Bank of England could offer a digital currency that isn’t going to be run in the exact same way as for example Bitcoin and should therefore not see the huge swings in its value that Bitcoin in particular has become famed for.
If the UK was to launch a digital currency that was part and parcel of their fiat currency then it would do away with the need for bank branches, and would offer some excellent and very low cost ways people could pay for goods and services, and also get paid their incomes r even benefits, by using a digital wallet much like a Bitcoin wallet for example.
It is going to be interesting to see how this story develops, and it would certainly be something of a coup for the UK if they were the very first country to launch their own unique type of digital currency.