BOE Chief Economist Suggests State-Issued Bitcoin for UK

The Bank of England (BOE) or the central bank of the United Kingdom decided to keep monetary policy unchanged in their rate statement this month, maintaining the current level of interest rates and asset purchases. However, in a recent testimony, BOE Chief Economist Andy Haldane suggested that the U.K. could adopt a state-issued digital currency like bitcoin in order to lessen dependence on cash and monetary policy.

Policymakers over at the U.S. Federal Reserve also decided to keep rates on hold last week, although many market participants are counting on an interest rate hike before the end of the year. This could effectively drive the U.S. dollar much higher against its foreign counterparts, triggering depreciation from counter currencies such as the British pound.

State-Issued Bitcoin?

Haldane is a known dove in the BOE, unlike his other policymakers McCafferty, Weale, and to some extend the BOE head himself, Mark Carney who are leaning towards hiking interest rates possibly in early 2016. For Haldane, the economic data from the U.K. don’t support the idea of monetary policy tightening just yet.

Nonetheless, a majority vote by the monetary policy committee to hike rates could still lead to a decision to tighten monetary policy, which might put a

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