Bitcoin could pose threat to financial stability of UK, warns Bank of England

[CryptoCurrencyInc.com]

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.

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[franky1]

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)

[Yakamoto]

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.

Good  

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.

[Bitcoinpro]

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

[Bitcoinpro]

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

[BitCoinNutJob]

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.

[Brangdon]

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.

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.

[guybrushthreepwood]

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.

[bitcoinbear]

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

[RogerBTCrabbyt]

In other news: buy more bitcoin

[Mr Tea]

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

[OrientA]

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.

[collinstar]

The video is awesome  

[Krang]

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.

[Dawnbreaker]

That's part of the point, silly.

[RappingSniper]

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.

[wasserman99]

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.

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.

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.

[Beliathon]

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

[Sefton]

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.

[FloodZone]

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.

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.