The Bank of England intends to create a cryptocurrency pegged to the pound sterling

The Bank of England intends to create a cryptocurrency pegged to the pound sterling

Research center of the Bank of England (BoE) is considering creating a cryptocurrency pegged to the pound sterling.

According to the newspaper Telegraph, it is expected that the team will provide a report on the results of investigations within 12 months.

If this project is approved, issued by the Central Bank cryptocurrency will allow British users to keep their digital media in the same Bank, without the need for the services of retail banks. It is reported that the system will produce large transactions almost instantly.

In conversation with the special Committee of the Treasury in December, Bank of England Governor mark Carney said that he participated in negotiations with several Central banks for the launch of the digital currency. In addition, BoE has successfully tested the technology of the blockchain this summer.

Carney said:

“The underlying technology of the blockchain is actually interest. We are actively investigating this technology in the Bank of England”.

Carney is confident that the use of blockchain technology for settlements between Central banks could become “the most interesting app” that ensures financial stability and efficiency.

As reported in September 2017, Simon Scorer, a researcher of the Bank publicly announced the key requirements issued by the Central Bank cryptocurrency, adding that she must have “an extraordinary level of elasticity” with respect to a number of problems.

Then he said:

“As the current financial infrastructure, a widely used digital currency of the Central Bank may be important for the whole national infrastructure… It will have to operate throughout the country, 24 hours a day, 365 days a year.”

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