Bank of England may issue its own cryptocurrency

Bank of England may issue its own cryptocurrency in the nearest future. Within a year UK's central bank is going to approve the plan to issue the national cryptocurrency, Telegraph reports.

Since early 2015, there has been a special group set up by the Bank of England. Its main goal is to develop options for implementation of cryptocurrency, which will be linked to the value of the pound sterling. Specialists study the technology of transactions, which is used in operations with bitcoin and other cryptocurrencies. By the end of 2018 a group will present a report on their work.

Cryptocurrency issued by Bank of England will allow the British to keep their money in digital form and to carry out all transactions without intermediaries.

Bank of England chief Mark Carney, said in late December at a meeting with the parliamentary financial committee that the regulator is interested in using blockchain technology.

However Mark Carney has warned that the mass adoption of digital currencies raises the risk of an “instantaneous run” on lenders that may threaten financial stability.