Financial institutions have shown a keen interest in the concept of distributed ledger technology, and some countries have even taken the plunge of creating their own national digital currencies. While digitizing fiat currency may seem clear as day to same, it could pose a major threat to the business model of commercial banks. Bank of England is rethinking their plans with blockchain technology for the time being, as all of the risks need to be weighed carefully, especially where the central bank role is concerned
Bank of England Does Not Get Overexcited Yet
At a time during which financial innovation will mean the demise or survival of many banks in the coming years, rushed decisions are the last thing anyone needs. Blockchain technology, which presents distributed ledgers t decentralize a lot of aspects associated with finance, is a powerful tool that can be wielded by anyone in the world. But without proper understanding of what this technology can do, there are a lot of potential doom scenarios to keep in mind.