Cryptocurrency: The Future of Money?
Andy Haldane, Chief Economist of the Bank of Englandand a member of the bank’s Monetary Policy Committee, thinks Bitcoin could replace the cash after decades.
According to the reportposted on Reddit, the economist attended the college for a talk.
There, he was asked about his thoughts on cryptocurrency. He responded that Bitcoin could replace the cash somewhere after 20-30 years.
He said he didn’t think it’d replace the cash tomorrow, but he was quite open to the idea 20 or 30 years down the line.
Bank of England is exploring the Cryptocurrency Potential
In Dec 2017, it wasreported that the Bank of England could launch its own Bitcoin-style virtual currency in 2018 as early as it can.
The BoE had formed a research unit in Feb 2015 to study the implications of cryptocurrency. If all would be okay, then The Bank of England will issue its own digital currency which will allow British citizens to hold money in digital currency form.
In Jan 2018, the bank announced that it keeps on looking into the crypto money area like bitcoin.
However, the plan to launch its crypto was dropped in the midst of worries about the effect on conventional banks.
The national bank trusts that interest in conventional paper money is moderately “versatile.” Its price and interest rates change according to the demand.
The Bank of England said it is uncertain whether the cryptocurrency space could maintain this flexibility or not.
Previous opinion on virtual currency
Haldane said in a BBC television interview,
There are lots of potential risks there, one of which is the danger to the consumer from buying into this stuff.
Along with Haldane, BoE Governor Mark Carney and Britain’s Financial Conduct Authority put an overview on cryptocurrency as a potential risk to consumers. They think that because of the ability of the underlying technology to improve payments and asset clearing and settlement, this will be a far-off step.
In the meantime, he had expressed that the cryptographic money was less than 1 percent of the global wealth and so it was not a risk to the current banking system.
What we think…
The market crash in 2018 made crypto fans to rethink about the potential of cryptocurrencies.
Scammers vanished, investors pulled their hands out, analysts were unable to conclude the reason behind it.
Now, the sudden recovery and the beginning of Bull Run are trying to regain people trust, forced them to reconsider its potential.
About Post Author
Manisha Agrawal is a cryptocurrency and blockchain enthusiast.
She has worked as a content writer for three years and worked as a research based crypto and blockchain blog writer too.
Also, she worked as a crypto news writer with various known firms like Crypto-News India, Coingape, The Coins Report, Zero Crypted, Blockmanity etc…