The Bank of England in an announcement on Tuesday said that it had formed a group with other banks to explore and figure out the potential of digital currencies backed by Central Banks. Other banks who make up the numbers are the Bank of Japan and the European Central Bank and will team up with the Bank for International Settlements (<a href="https://r.search.yahoo.com/_ylt=AwrPiBV2ASdegjkAKku7HAx.;_ylu=X3oDMTByaW0wdmlxBGNvbG8Dc2czBHBvcwMyBHZ0aWQDBHNlYwNzcg--/RV=2/RE=1579643383/RO=10/RU=https%3a%2f%2fen.wikipedia.org%2fwiki%2fBank_for_International_Settlements/RK=2/RS=kcTRN6YaDzPg.XmVPbPij_5FgdY-">BIS</a>), a global institution owned by central banks. The <a href="https://www.cryptoknowmics.com/news/ecb-president-european-central-bank-shouldnt-discourage-private-stablecoins">Bank of England</a> said that the old cases, the economic, functional and technical design choices, all would be studies and knowledge on emerging technologies would be shared. 

Facebook’s Libra, popularised as a digital currency known as a “global stablecoin”  has received widespread backlash. The ECB last year tried to explore the possibilities and pros of central bank-backed digital currencies The Central Bank, at the helm of the 19-member bloc which runs on the euro currency, said that it has shifted its attention on the “far-reaching implications for the financial system” that would arise from their introduction.

The plan was praised and welcomed with open arms by European Union finance ministers, who in December made it evident that a Libra-like coin is a threat and should not launch in the EU, “ “until the legal, regulatory, and oversight challenges and risks have been adequately identified and addressed.”
<h2>Bank of England's Fear Shared by Plenty</h2>
Central banks such as the Bank of England are fearful about such currencies becoming mainstream that wish to be the undisputed king of the currency world. Their fear stems from the fact that these can ultimately replace the traditional currencies, which might disrupt the whole foundation of the financial system. Switzerland based institution, BIS, which came into existence after World War I, to promote healthier ties amongst various central banks, claims Libra as a bold step by Facebook, and one that shouldn’t be ignored.

Bank of England Plans on Exploring Digital Currencies Potential

The Central Bank of England is about to create a group with other banks to study and try to explore the potential of cryptocurrency.

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

Bank of England Plans on Exploring Digital Currencies Potential

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