Bitcoin is not a threat the United Kingdom’s financial system – yet – says a Bank of England report, but it could work to disintermidate traditional banks.
Payment system under Bitcoin's distributed ledger
Money held in bank deposits are nothing more than digital records, the report noted, as it cited Bitcoin’s “distributed ledger” underlying the payment system as a significant innovation. It is this distributed ledger that allows the payment system to “operate in an entirely decentralized way, without intermediaries such as banks.”
The Bank of England notes interest in digital currencies such as Bitcoin appears to be driven by three key factors: ideology, financial return...
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