View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
February 26, 2015

Bank of England flirts with Bitcoin

The UK's central bank sees "considerable promise" in distributed ledger technology.

By Alexander Sword

The Bank of England has suggested in a report that it and other central banks may issue digital currencies in the future.

As part of its "One Bank Research Agenda", the UK’s central bank expounded on the possibilities offered by digital currencies due to technology such as blockchain, which distributes the ledger of every transaction across millions of computers.

"The emergence of private digital currencies (such as Bitcoin) has shown that it is possible to transfer value securely without a trusted third party.

"While existing private digital currencies have economic flaws which make them volatile, the distributed ledger technology that their payment systems rely on may have considerable promise.

"This raises the question of whether central banks should themselves make use of such technology to issue digital currencies.

"Further research would also be required to devise a system which could utilise distributed ledger technology without compromising a central bank’s ability to control its currency and secure the system against systemic attack."

The nature of money and how it is issued have been under increasing scrutiny in recent years, with the Bank of England last year publishing a paper stating that the majority of what is used today as money is created as loans by private banks.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU