Category Archive: bicoin

Bank of England will create its own cryptocurrency

The Bank of England announced its decision to create its own digital currency.

The cryptocurrency will be called RSCoin and it will use the blockchain, the decentralized ledger where bitcoin transactions are written and executed.

More Centralized Control

RSCoin has been developed by researchers at the University College of London.

Of course, this new cryptocurrency will provide a more centralized control compared to bitcoin.

“RSCoin introduces a degree of centralization into the two typically decentralized components of a blockchainbased ledger: the generation of the monetary supply and the constitution of the transaction ledger. In its simplest form, the RSCoin system assumes two structural entities: the central bank, a centralized entity that ultimately has complete control over the generation of the monetary supply, and a distributed set of mintettes that are responsible for the maintenance of the transaction ledger”, it is said in the RSCoin abstract.

How could this be positive?

Even if RSCoin is centralized and the opposite thing of Bitcoin, we could say that it is positive as it means that worldwide Central Banks are starting to give importance to cryptocurrencies.

However, RSCoin has its own benefits: for example no double spending, non-repudiable sealing, timed personal audits, universal audits and exposed inactivity.

Read the complete documentation

Univerisity College of London researches George Danezis and Sarah Meiklejohn published an abstract about RSCoin.

The full whitepaper is intitled “Centrally Banked Cryptocurrencies”.

The abstract begins from the bitcoin history, to explain everyone the impact of the digital currencies not only in the finance world:

Recently, major financial institutions such as JPMorgan Chase and Nasdaq have announced plans to develop blockchain technologies. The potential impacts of cryptocurrencies have now been acknowledged even by government institutions: the European Central Bank anticipates their “impact on monetary policy and price stability”.

People’s Bank of China and its own cryptocurrency

In January 2016, the People’s Bank of China commented about its plans to launch its own digital currency and create a new financial infrastructure for the country.

The project started in 2014, when researches began to study cryptocurrencies related to business operations.

People’s Bank of China commented:

“The issuance of digital currency can reduce the significant costs of issuing and circulating traditional currencies, improve the convenience and transparency of economic transactions, reduce money laundering, tax evasion and other criminal acts, enhance the central bank’s control of over the money supply and currency circulation, better support economic and social development and aid in extending financial services to under-served populations”.

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Amelia Tomasicchio