Digital Currency News: Bank of England Manage Their Own DC
Digital Currency Testing in England Has Begun
The Bank of England has released their own digital currency and it was out for testing now, this is according to “The Deal Room”, a financial news website. With this move, the Bank of England shows that they believe that there is a new money, that money is evolving and that digital currency is a new trend and the new money. Certainly, they don’t want to get left behind. The bank sees the advantages of a cryptocurrency, thus they have decided to release their own. This new digital currency the bank released is called RSCoin.
What is the RSCoin?
The RSCoin is the new digital currency that was issued by the Bank of England. It was developed by the University College of London researchers. Inspired by the traits of a cryptocurrency, they made it tamper–proof and counterfeit resistant. The developers of the said coin, however don’t wish it to be called a digital currency, rather they prefer it to be called a hybrid currency. This is because they don’t adopt all the traits of a cryptocurrency but only copied the advantageous part of it, that of course deemed beneficial for the bank and for the country as they say.
The Difference of RSCoin to Digital Currency
They use the term hybrid currency because they combined the distributed ledger platform benefits and the centralized way of managing the fiat currency. One of the remarkable traits of a cryptocurrency is that it is decentralized and there is no other third party involved like the bank and other government financial institutions. RSCoin is different. The ledger will be held within the Bank of England. It is centralized and the bank will determine who can have an access on the ledger. Expect that this will include other partners in commercial banking and other financial institutions.
The Negative Impact of RSCoin on Digital Currency Industry
Others are saying that this move by the Bank of England means that they are trying to take away the attention of the public to the true cryptocurrencies. They are making their own a way of fighting their way on the war against the decentralized cryptocurrency where they are not needed in every financial transaction.
The Positive Impact of RSCoin on Digital Currency Industry
Others might have seen RSCoin as a threat, but other people are seeing a positive impact on this initiative by the bank. Since Bank of England started their own digital currency, it can only mean one thing to people and that is digital currencies are real. This builds people’s trust in the industry. Little by little digital currency will be a normal currency and will be part of people’s daily life.
More and more countries are embracing digital currency in their own way. They believe in the saying “If you can’t beat them, join them”. That is what they are doing now, banks can’t beat the new currency so they join the revolution. The central bank knows that this is the only way they can adapt fast to the changing economic situation and join the global trade.