[2015-02-26]CS - Bank of England:"Blockchain Could Revolutionise Payment System"

[kaegmo]

Digital currencies have a potential to change the payments system by enabling people making direct transactions without banks’ participation, the Bank of England stated in its new study.

http://www.coinspeaker.com/2015/02/25/bitcoin-and-blockchain-could-revolutionise-payment-system-says-bank-of-england-7185/

[medUSA]

Here is the actual study done by BoE:
http://www.bankofengland.co.uk/research/Documents/onebank/discussion.pdf
(Starts on page 31: Why might central banks issue digital currencies?)

There are several different ways in which a central bank might make use of a digital currency. It could be used as a new way of undertaking interbank settlement, or it could be made available to a wider range of banks and NBFIs. In principle, it might also be made available to non-financial firms and individuals generally, as banknotes are today.

The study is purely a research, it suggested other relevant research questions. At least BoE is taking the blockchain tech seriously enough to research on it.

[Hamuki]

Well, it would be interesting to see banks starting to issue digital currency.

[qwerty555]

Well, it would be interesting to see banks starting to issue digital currency.

Banks have been using and promoting digital currency for a long time. 

Most of the traditional money supply is bank money held on computers. This is also considered digital currency.

The significant difference and innovation with Bitcoin and other crypto's is the blockchain central ledger.

The move to go cashless will accelerate because it is simply better and cheaper. Here are the top 5 countries, All countries will probably eventually adopt a blockchain whether it be in 5 or 40 years  (their own version)

http://www.totalpayments.org/2013/07/08/top-5-cashless-countries/

[1Referee]

Could? It will, if used.

Currently the banks and the services that they offer do not match the year we live in.

It's dated, and they know that. They seem to review the possibilities of having a blockchain which is a good thing.

[bitbouillion]

Banks have been using and promoting digital currency for a long time.  

Most of the traditional money supply is bank money held on computers. This is also considered digital currency.

The significant difference and innovation with Bitcoin and other crypto's is the blockchain central ledger.

Another significant difference is that Bitcoin does not need collateral and has no counter party risks.

Even if banks settle electronically with each other today, for the net settlement amount collateral has to be transferred, which creates administrative overhead and time constraints. Also the risks in case that the counter party fails to deliver the collateral has to be factored in.

[1Referee]

Could? It will, if used.

Currently the banks and the services that they offer do not match the year we live in.

It's dated, and they know that. They seem to review the possibilities of having a blockchain which is a good thing.

But they are still delaying the acceptance to milk people as long as possible. The fees banks are taking aren't bad compared to the greed of Western Union and Paypal.

That's the point.

How long will they push the blockchain aside and continue with their old fashion methods for squeezing billions out of our pockets.

They have to deal with share holders, profit targets, etc. They can't afford to use a new technology and instantly lose billions in revenue and profit.

I think it will take at least 5 years before we see any kind of blockchain integration in the financial world.

[Mr Tea]

Digital currencies have a potential to change the payments system by enabling people making direct transactions without banks’ participation

Ha. We obviously already know this. That's what makes bitcoin so great. Glad to see they realize it too. Now all we need is the rest of the world to see what such a great idea it is.