According to the Bank of England Governor Mark Carney cryptocurrency is usually used for illegal actions. In his opinion, the use of different cryptocurrencies is mostly illegal, for example, it is often used in money laundering schemes. He believes that it is very important to introduce more transparency into cryptocurrency transactions.
Mark Carney pointed out that he spoke about the concern of international regulators about the use of cryptocurrencies. He expects this topic to be on the agenda at upcoming G20 meetings.
As Bank of England Governor states there are a lot of opportunities for cryptocurrency, for example, it can be integrated into the formal financial system. That is why it is very important to face some decisions about what we should expect from cryptocurrencies in future.
Although Carney did not mention Bank of England’s plans, The Bank of England has been researching cryptocurrencies in order to create its own digital currency. The new currency would be linked to the value of sterling and would allow people to keep their money in the central bank itself, cutting out the need for a retail bank.
In order to increase the country’s GDP, the central bank would have to issue enough digital currency units to equal 30 percent of the current GDP against government bonds. This will allow increasing GDP by about 3%.