The Bank of England has not closed the door to a cryptocurrency issued by the central bank despite the announcement of such a decision earlier this year.
Mark Carney, Governor of the Bank of England, said in a panel discussion on the future of central banks in Stockholm that he would consider a central bank-issued digital currency, but this is not a pressing concern, Bloomberg said. He reiterated earlier statements that cryptocurrencies are not money at the moment.
The effects on the financial system are worrying
Earlier this year, the bank said it would not implement the cryptocurrency issued by banks because of potential impact on the financial system. The bank, which began investigating the cryptocurrency in 2015, eventually decided that consumers would choose cryptocurrency and close their commercial bank accounts, which would devastate the financial system.
The Bank also expressed its fear that it would lose its ability to use its interest rate policy to maintain its financial stability if it implemented a bank-controlled cryptocurrency.
Also read: The Bank of England is making plans for its own cryptocurrency and fears instability
The Bank of England is pursuing blockchain technology
However, Carney noted at the time that the provision of blockchain technology was beneficial to the central bank. He said he brings financial stability and saves a lot of computing power.
In April, the BoE released a proof-of-concept analysis that allows customers to share information on a secure network. The bank commissioned Chainchain, a provider of blockchain services, to develop a solution.
The bank said network-wide data storage and improved user privacy are in a preliminary phase, but the ability to achieve those goals still exists.
In 2016, the bank began to work with financial technology companies and launched the Fintech Accelerator program. He has worked with Ripple, BitSight, PwC, Enforcd and MindBridge Analytics Inc. in the past.