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R K

Bank Of England Promoting Bitcoin

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This is starting to get rather weird.........

Carney's new Chief Cashier Victoria Cleland was on Channel 4 news (edited - I erroneously said BBC) softening up the great unwashed the other night, now their main twitter a/c is promoting it

Bank of England @bankofengland 40m

Making a Bitcoin transaction: explained step-by-step http://goo.gl/FMqJx7 #Bitcoin

Edited by R K

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You tube promotion too.

The final question What effect will Bitcoin have on the BOE?

A: it's the job of the BOE to monitor any developments in tech which pose risks to its objectives. :ph34r:

Edited by little fish

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If thats a Bank of England Video, then I am changing my name to RED BLOO.

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If thats a Bank of England Video, then I am changing my name to RED BLOO.

Has a nice ring to it... :)

BoE Bitcoin poses risks.

http://www.standard.co.uk/business/business-news/bank-of-england-bitcoin-poses-risks-9726756.html

Chanel 4 news. BoE say it's time to take Bitcoin seriously.

http://www.channel4.com/news/bitcoin-bank-of-england-super-rich-excluded-poor-internet-currency

Keep calm and mine coins.

Edited by little fish

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You tube promotion too.

The final question What effect will Bitcoin have on the BOE?

A: it's the job of the BOE to monitor any developments in tech which pose risks to its objectives. :ph34r:

That's also the thrust of the last question in the other video. i.e. So long as few people use it they're not too concerned. If lots of people use it then it will pose a threat to financial stability. Then they're interested.

One wonders if they're seeking to somehow grab the technology to enable them to maintain currency monopoly but by effectively removing the existing PLC banks from currency intermediation via existing payment systems.

Or perhaps they see benefits to controlling the money supply via digital currencies rather than via increasing sterling debt and credit issuance. i.e. Govt spending/deficits and mortgages/student loans (?) or as a supplement to those channels. Remember BoE already own 30% of the issued sterling debt in the UK.

Edited by R K

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Been resting on their laurels too long, now scared of losing control.

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

The chat on Reddit has been interesting. Think we need a goosebumps emoticon on hpc. History being made?

http://www.reddit.com/r/Bitcoin/comments/2g3szs/bank_of_england_uploads_youtube_video_about/

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The BOE and the government would love to have us only using a digital currency.

Will they be able to grab hold of bitcoin, not sure. Maybe they have lots of spare computing horsepower they could be using to mine coins.

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That's also the thrust of the last question in the other video. i.e. So long as few people use it they're not too concerned. If lots of people use it then it will pose a threat to financial stability. Then they're interested.

One wonders if they're seeking to somehow grab the technology to enable them to maintain currency monopoly but by effectively removing the existing PLC banks from currency intermediation via existing payment systems.

Or perhaps they see benefits to controlling the money supply via digital currencies rather than via increasing sterling debt and credit issuance. i.e. Govt spending/deficits and mortgages/student loans (?) or as a supplement to those channels. Remember BoE already own 30% of the issued sterling debt in the UK.

Yes.If VI's buy all the bitcoins ( with Central and other banks virtual money), and since bitcoins cannot be created beyond the certain amount, then they killed the whole bitcoin market.After that, fiat currencies and their virtual creation will continue endlessly because there will be no competirion from bitcoin.

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The BOE and the government would love to have us only using a digital currency.

Will they be able to grab hold of bitcoin, not sure. Maybe they have lots of spare computing horsepower they could be using to mine coins.

The enforcement of negative nominal interest rates is their goal.

http://www.pieria.co.uk/articles/part_1_pieria_debate_on_electronic_money__negative_rates

Jonathon Portes: Suppose you wanted an interest rate of -5%. If I’ve got £1000 in my bank account now what’s going to happen to it?

Miles Kimball: Under that scenario that’s going to turn in £950 in a year if you leave it in your bank account. Now I want to make sure that if you take it out of your bank account and put it back in at a later date it turns into the same £950.

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Yes.If VI's buy all the bitcoins ( with Central and other banks virtual money), and since bitcoins cannot be created beyond the certain amount, then they killed the whole bitcoin market.After that, fiat currencies and their virtual creation will continue endlessly because there will be no competirion from bitcoin.

My impression, which may be a false one, from what they're saying, is that they like the technology aspects of decentralised 'ledgers', but that they are less keen on the mining aspect the 'trusted 3rd party' issue and the price volatility.

My guess is they'll want to in some way harness the tech to initially replace/co-exist alongside cash notes and coins and small payments, whilst maintaining control and 'trust' (whether you believe that or not) provided by a central bank but via decentralised technology.

They talk about modern currencies having no backing and only existing as digital entries on a trusted ledger for instance. The examples given being share certificates and mobile phone company payment systems. (Do I 'trust' mobile phone companies? Err, no of course not!).

I'd put money on the BoE looking to use the tecn but as a 'trusted' provider. At least initially and on a small scale. But it's possible I suppose that they just want to offload notes and coin overhead to 3rd party providers, like mobile phone providers for instance using this tech.

Edited by R K

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My impression, which may be a false one, from what they're saying, is that they like the technology aspects of decentralised 'ledgers', but that they are less keen on the mining aspect the 'trusted 3rd party' issue and the price volatility.

My guess is they'll want to in some way harness the tech to initially replace/co-exist alongside cash notes and coins and small payments, whilst maintaining control and 'trust' (whether you believe that or not) provided by a central bank but via decentralised technology.

They talk about modern currencies having no backing and only existing as digital entries on a trusted ledger for instance. The examples given being share certificates and mobile phone company payment systems. (Do I 'trust' mobile phone companies? Err, no of course not!).

I'd put money on the BoE looking to use the tecn but as a 'trusted' provider. At least initially and on a small scale. But it's possible I suppose that they just want to offload notes and coin overhead to 3rd party providers, like mobile phone providers for instance using this tech.

Id say share certificates are a very bad example and diametric to phone company payment systems. The majority of people dont buy share certificates, they are about as popular as black and white TVs, they purchase through nominee accounts and give up most of their rights as a shareholder (either stupid in giving up ownership, or smart in simplifying the process depending on your POV). Personally id rather have the certificates if im risking proverbial sweat and tears but i realise im in the minority

Edited by Georgia O'Keeffe

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Id say share certificates are a very bad example and diametric to phone company payment systems. The majority of people dont buy share certificates, they are about as popular as black and white TVs, they purchase through nominee accounts and give up most of their rights as a shareholder (either stupid in giving up ownership, or smart in simplifying the process depending on your POV). Personally id rather have the certificates if im risking proverbial sweat and tears but i realise im in the minority

Agree with you. The suggestion in the vid was that almost everybody 'trusts' nominee companies. The Citeh couldn't operate any more with a paper system in any event.

They will, until one of them goes bust or doesn't deliver title upon demand. Here's their latest tweet for example.

Bank of England @bankofengland 51m

Most financial assets today exist as purely digital records making an “internet of finance” a possibility http://goo.gl/FMqJx7 #Bitcoin

It's one thing risking £50 in a mobile payment system. It's another trusting savings over say £85,000 to a bank backed by central bank LOLR and regulated by the govt and it's another again trusting the same money to an internet algo with NO govt backing or LOLR support. I suspect it's that aspect the BoE are ultimately interested in.

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Lots of posts about it by Izzy Kaminska on FT alphaville

Ta. Unfortunately FT wont allow pastes from their articles here.

What does she say?

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Ta. Unfortunately FT wont allow pastes from their articles here.

What does she say?

She doesn’t like Bitcoin, thinks the general paranoia over and distinction between state and non-state money is stupid, and similarly with the free vs not free and centralised vs decentralised issues. But appreciates the distributed open ledger system like the BoE and sees it as a precursor to new financial networks or full on emoney. Which is quite similar to my own view, except I think she hugely overanalyses what is really to date still just a computer game.

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She doesn’t like Bitcoin, thinks the general paranoia over and distinction between state and non-state money is stupid, and similarly with the free vs not free and centralised vs decentralised issues. But appreciates the distributed open ledger system like the BoE and sees it as a precursor to new financial networks or full on emoney. Which is quite similar to my own view, except I think she hugely overanalyses what is really to date still just a computer game.

Thanks. I think that's my view also at the present time. BoE like/want (to promote) the technology

I'm impressed you summarised in 1 paragraph too.

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these are NOT the views of the Bank of England as per their website:

D Nixon and T Smith
Bank of England Quarterly Bulletin 2012 Q1

The views expressed in all these papers are those of the author and do not necessarily reflect those of the Bank of England.

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This thread should be merged with the much longer bitcoin thread. Save it getting lost.

I started a fresh thread rather than just adding to the existing one 'cause it felt significant that the BoE are now starting to very publically take an interest in bitcoin/digi currencies, but you make a good point.

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