Bank Of England Could Launch Its Own Cryptocurrency Within 12 Months
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Bitcoin has dominated the news recently, following its astonishing soar in value over the last few months of the year. Despite falling by 10 percent on 20 December, Business Insider reports that it's climbing once more on the final day of 2017. It's an incredible success story.
It has also set a precedent for other cryptocurrencies, with Bitcoin Cash (which split from Bitcoin in August) and Litecoin among those tipped as wise investments for the future. So what are you waiting for? Buy low! Sell high! That's how you play the markets, according to the limited understanding I've gathered from watching Trading Places a few times.
Well, now it's the Bank of England's turn. It has set up a research unit to investigate the possibility of issuing its own cryptocurrency, and, according to the Daily Mail, reports could be filed within the next 12 months, clearing the path for the system to be introduced.
It's thought that any new currency launched by the bank would be linked to the value of sterling, allowing people to keep their money with the central bank itself, and eliminating the need for a retail bank.
Last year, the Bank of England unveiled a theoretical currency called RSCoin, which could be used by central banks.
Meanwhile, it's thought that Bitcoin's value could grow even more than it has done in a productively busy year.
One expert has even suggested that it might top £74,545 ($100,000) in 2018.
Dave Chapman, managing director of Octagon Strategy, a company which trades in cryptocurrency, told CNBC that he 'wouldn't be surprised to see a six-figure headline'.
With a history of being proven right when predicting the value of cryptocurrency, Chapman told CNBC: "I was quoted back in August when Bitcoin was trading at around $4,000 (£2,900) that we would have a five-figure headline by the end of this year.
"I think a lot of people thought I was crazy, a lot of people scoffed at me, but that's OK."
Bitcoin reached its highest value of almost $20,000 (£14,800) earlier this month, but is now valued at around $14,000 (£10,370).
Bet you wish you'd invested back when it was worth nothing, eh?
Featured Image Credit: Credit: PA
Topics: Bitcoin, UK News, Bank of England, Money, Finance, Cryptocurrency