Bank of England Issues Digital Currency Report: Bitcoin Possible Future Threat?
The Bank of England released a report today after what it termed a lengthy investigation about digital currencies like Bitcoin. The report described cryptocurrencies and even went as far as saying that the idea was essentially ingenious and then moved on to talk about these currencies in present tense, describing its current market penetration. The report was prepared by four of the bank’s officers: Robleh Ali of the Bank’s Financial Market Infrastructure Directorate, John Barrdear of the Bank’s Monetary Assessment and Strategy Division and Roger Clews and James Southgate and was included in the Bank’s Quarterly Bulletin.
If you are a crypto enthusiast and have read the report than you were no doubt amused after reading this report because the writers were seemingly so short sighted. The report begins by describing the traditional banking definition of money. Money must have three features:
Store of Value to allow transfer of purchasing power Medium of Exchange so that payments can be made Unit of Account to measure value
This post was published at Coin Telegraph on 2014-09-14.