Bitcoin Forum

Bitcoin could pose threat to financial stability of UK, warns Bank of England
http://www.theguardian.com/technology/2014/sep/11/bitcoin-threat-financial-stability-uk-bank-of-england

Looks like central banks is in deep water.

this is the dis-information you will always see.

such as government health advisers of the 1950's telling people that smoking is good for your health
such as government health advisers of the 2010's telling people that fluoridated water is good for your health

such as banks telling you that buying a share that does NOT change, is a good investment.

think about it. if it does not move then the price you buy at is the same you will sell at. meaning you wont make profit to keep up with inflation.

the real story is that they dont want normal people investing for profit while they themselves cannot secretly use your funds for their own portfolio.

ys there are risks, but putting a $10 bank note into a bank in 1990 which would have bought 12 loaves of bread. can now only buy you 4 loaves of bread, even after yearly interest that banks offer you, you may get 5 loaves of bread.

invest $10 in bitcoin in 2009 you can now cash out $1million. (5 loaves of bread becomes 250,000 loaves of bread)
invest $10 in bitcoin september 2013, now you can cash out atleast $40 (4 loaves of bread becomes 16 loaves of bread)

Good  :D

Of course it will pose dangers to the stability, it's not part of the great scam that they've created.

However, that doesn't mean it's bad, just not favorable for the banks. Just like how the banks and their inflation is not favorable for the masses.

what queer timing to release this on a Friday

By Phillip Inman

And Apparently the Bank of England has done a series of Economic reports but in reality they are just Crypto Essay's

look at all the references,

http://www.bankofengland.co.uk/publications/Pages/quarterlybulletin/2014/qb14q3prereleasedigitalcurrenciesbitcoin.aspx

look at the two yt videos probably shot the same day of the release

and they say the full bulletin is due out on the 16th

http://www.youtube.com/watch?feature=player_embedded&v=rGNNiTaC2xs

http://www.youtube.com/watch?feature=player_embedded&v=CxDKE_gQX_M

Great things will happen in the UK if the banking industry loses its grip on us, get ready for an almighty housing market crash firstly.

It's bad reporting. The bank actually says:

"Digital currencies do not currently pose a material risk to monetary or financial stability in the United Kingdom. Should they achieve limited adoption as a payment system, they are unlikely to undermine the Bank’s ability to achieve monetary stability. While that could, in theory, change if sterling were abandoned in favour of an alternative currency for a significant fraction of the economy, such a scenario is considered extremely unlikely at present. A variety of potential risks to financial stability could emerge if a digital currency attained systemic status as a payment system, most of which could be addressed through regulatory supervision of relevant parties."

That's the conclusion. The media are distorting it.

Bitcoin could pose threat to financial stability as opposed to fiat which is usually always the source of financial instability when they devalue the currency by printing billions of it at will? They're obviously fearful of it.

Bitcoin could pose a threat to financial stability of the bank of england, move your money out quick

In other news: buy more bitcoin

Sounds just like trying to spread a bit of fear because they fear it themselves. They obviously fear what they do no understand.

Bitcoin is just cash with predetermined supply. Corporation can plan years ahead because they know will not be oversupply of Bitcoin. That will stabilize the economy and anticipated growth.

The video is awesome  8)

I can't see it ever being a threat to the pound or be big enough to cause financial instability. It can coexist peacefully with any other currencies.

That's part of the point, silly.

that attitude is only going to bring contrarian attitudes. what the UK needs to do is completely co-opt crypto and become a hub for digital currencies. it needs to act quickly and decisively in order to attract as much of the energy as possible.

What the article in the OP is basically saying is that once bitcoin becomes more widely adopted in the UK, their central bank will have trouble manipulating the money supply to achieve it's monitory goals.

They are saying that the threat would be that bitcoin would become widely adopted.

Any earnest student of history will tell you that the greatest threat to the financial stability of the UK is in fact the Bank of England.

https://www.youtube.com/watch?v=iFDe5kUUyT0

And the Federal Reserve for America. People wont listen to the truth though because those in power will use their propaganda tools such as the mainstream media effectively.

That's not going to happen when the BoE writes reports like this though. They are correct: bitcoin presents a threat to the established system. I'd love to see it being co-opted more widely in the UK though.

The actual bank report (http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q3digitalcurrenciesbitcoin2.pdf) isn't at all alarmist like the scare headline the guardian wrote, it mainly concentrates on long term problems of decentralized cryptocurrencies like how they believe transaction fees are not sustainable therefore widespread adoption is unlikely. Their main concern is the rise of fractional reserve banking and derivatives being tied to cryptocurrencies, so if somebody gets a million bitcoins and then starts lending fiat in a fractional reserve unregulated fashion against those coins there will obviously be problems. They also worry about a fragmentation of the UK economy if a big enough group of businesses and individuals decide to entirely transact without inflated paper IOUs.

There's also the issue of backdoor nation state manipulation of central bank currencies should future BTC->sterling trading be large enough. This is China's and Russia's main concern with Bitcoin, that the CIA will dump billions into bitcoin to trade against their currencies to fracture and manipulate their economies hence why direct Ruble/Renminbi trading is discouraged but they don't care if you trade Bitcoin for any other currency.

Why do I feel this could be some kind of way to prevent people from wanting to be involved in bitcoin? We all know the banks are running scared so why not try and scare monger people with news like this? Only makes sense if the banks want their way I guess.

This is already happening when some coin developer issue their coins (such as supernet token, ethereum)  to exchange for BTC.