Over the past few months, we have reported quite heavily on the movements of UK authorities, who, as it stands, are currently debating the future for cryptocurrencies in the UK. Coined the ‘Cryptocurrency Taskforce’ a number of UK authorities are working together to establish a plan for how cryptocurrencies can be regulated and worked into the UK economy. Such authorities include HM Treasury, the Bank of England and officials from the UK Government. According to reports out today, Governor of the Bank of England, Mark Carney, has now added a new possible route onto cryptocurrencies
According to a report by the Daily Express (UK), Carney has told an audience at the Riksbank Anniversary Conference in Sweden, that he believes the future of banking lies within Central Banking Digital Currency (CBDC) and that this in turn, will involve the participation of fewer central bankers. In sort, with typical FIAT currencies, their operation requires a number of various officials, making the currency centralised. With a CBDC, of course, the currency still remains central to the bank, yet fewer officials have overall control of the asset, therefore the currency is somewhat more decentralised.
Such a CBDC, controlled by the Bank of England (aptly named Brit Coin in this article) would ensure that the UK has access to an alternative to the Pound, in the form of a cryptocurrency
This new report does not consider how regulations may impact this, but it at least suggests that both Carney and the Bank of England are becoming more open to the idea of a UK based cryptocurrency. Still, as it stands, we can’t be too sure as to what level of regulation might exist here.
According to the Daily Express:
“Mr Carney's change of heart on cryptocurrency follows a number of u-turns from the Bank of England chief on key economic issues. Last week the governor was forced to defend his decision to hold interest rates this month, despite making clear noises to households and markets that rates were set to rise.”
See the full report by the Daily Express, for yourself, here- https://www.express.co.uk/finance/city/966127/bitcoin-latest-cryptocurrency-news-ethereum-mark-carney-bank-of-england
What does all of this mean?
It at least suggests that citizens of the UK should remain positive about future cryptocurrency regulation. It seems that each day, the official UK stance does swing towards cryptocurrency adoption
and acceptance and therefore, we should expect future regulations to reflect this ideology. For now, though, as it stands, we will need to wait and see just how these regulations transpire and of course, we’ll have to wait to hear more about a potential CBDC, or Brit Coin, as it may very well be known.