Bank of England recognized Bitcoin technology to cause skeletal changes in payment industry

The study was part of the central bank’s One Bank Research Agenda, a report that investigates the current central polices and their interaction with the ever-changing international polices, regulations, market structures, and none the least, the fundamental technologies. In it, the Bank of England clearly recognized Bitcoin as an obstructive and adoptive technology, the one they could use in future.

“The emergence of private digital currencies (such as Bitcoin) has shown that it is possible to transfer value securely without a trusted third party,” the central bank said while questioning whether they could issue its very own digital currency.

“It could be used as a new way of undertaking interbank settlement,” it predicted, “or it could be made available to a wider range of banks and NBFIs.” The bank meanwhile also noted the negative impacts such a obstructive technology could have on the current payment system.

The report further routed through more issue a normal bank could face while implementing the Bitcoin technology. It first spoke of challenges in making a separate protocol for bank’s digital currency. It meanwhile also raised the economical and regulatory issues that will need an overlook before implementing a new distributed ledger system.

But overall, the Bank of England raised some really important queries that could be resolved in a timely manner, once the payment technology veterans sit around and discuss them in detail. The report finally came us a positive signal for Bitcoin technology as a whole.