Buried in the Chancellor’s budget breakdown were some compelling references to the future of digital currencies in the UK.
In a document released by the Treasury, the government summarised its findings from an open call for information run in November to gather information from the business world on the uses and potential of Bitcoin and other virtual currencies.
According to the document, the survey highlighted a broad range of ways that that digital currencies, used as a method of payment, could offer to consumers, businesses, charities and the wider economy. However, the responses also suggested that, as they currently stand, these also have “ inherent flaws which make them volatile and potentially unsuitable for mainstream usage” and many fear that they could be “an enabler of crime”.
More interesting to the Treasury, it seems, is the blockchain technology that powers Bitcoin.
“While there are clear barriers to digital currencies achieving widespread use in their current form, the ‘distributed ledger’ technology that underpins digital currencies has significant future promise as an innovation in payments technology,” said the report.
The government says that it now plans to focus on supporting research, minimising opportunities for criminal activity and creating “the right environment for legitimate digital currency entrepreneurs to flourish”.
Whitepapers
Related reading
5 ways blockchain can change the cross-border payments landscape
Cross-border payments is a changing sector of the industry, driven by customers demanding little to no friction and encountering multiple steps, intermediaries ... read more
The SME technology revolution | video
The UK is home to 5.4m micro SMEs that have fewer than nine employees, according to the House of Commons library. They ... read more
JP Morgan blockchain network showcases banks’ DLT progress
JP Morgan’s expansion of its blockchain-based interbank payments project signals that major banks are stealing a march on disruptors and startups by ... read more
Security a priority for EU’s INATBA blockchain taskforce
The European Commission’s new blockchain initiative, the International Association for Trusted Blockchain Applications (INATBA), should focus on quashing extant security concerns around ... read more