Bank of England considering creating its own cryptocurrency

The Bank of England (BoE) is considering developing its own cryptocurrency in an effort to prevent extinct traditional banks. The United Kingdom's central bank has expressed a clearer interest in developing its own virtual currency and the potential for launch.

Technological developments intensified including in the field of monetary where cryptocurrencies have gone beyond the simple idea of online banking that has taken off in recent years. Owners easily transfer or link to a myriad of active sites without third-party institutions such as banks.

Tinuku Bank of England considering creating its own cryptocurrency

Blockchain technology is growing and concerns about the existence and authority of traditional banks have become a concern throughout the country. Many countries forbid people to use such bitcoins as a means of payment for a variety of reasons and accusations.

Public acceptance of the transition of traditional currency to the virtual currency remains a polarized topic of conversation. BoE governor Mark Carney said in mid-December that the Treasury Select Committee had held talks with other central banks about the launch of the digital currency.

Central banks are already using digital money, but are exchanged centrally and through many parties across accounts in banks. Cryptocurrencies allow parties to make payment transactions directly and decentralized using blockchain technology in seconds.

"You can create a situation where you can make transactions instantly, so once there is a concern, people can switch to their accounts at the Bank of England," Carney said.

Carney believes price increases of cryptocurrencies do not pose a risk to global financial stability. In the absence of intermediaries to facilitate and track transactions, consumers who have a central bank issued cryptocurrency may open accounts at any bank, including central banks.