Bank of England to launch its own Cryptocurrency
In January 2016, China’s National Bank announced to launch it’s own cryptocurrency. Following China, England also plans the same.
Bank of England is also set to launch it’s own cryptocurrency called “RS COIN”.
RS COIN will also work on the same technology on which Bitcoin is based, i.e Blockchain, but with a major difference. Unlike Bitcoin, RS COIN will be centralized!!!!
Yes, you git it right. It will be controlled by the Bank of England, being the single controller for the Blockchain and the encryption key that allows the addition or subtraction of the cryptocurrency from the Blockchain.
RSCoin is explained as radical shift from traditional crypto currencies. It is referred to as a hybrid product of the distributed model of bitcoin and conventional centralized fiat currency.
In this hybrid model, a central bank delegates the authority of validating transactions to a number of other institutions that are called “Mintettes” ( similar to miners in case of bitcoin and other crypto currencies). These mintettes are known and can be held legally accountable for their actions.
To conclude, central aurthorities are realizing the fact that digital currencies are far more better,efficient and cost saving than traditional fiat currencies and thus, central authorities around the world are considering to launch their own digital crypto currencies.On the other hand, running these currencies on centralized blockchain technology is still unfavourable.
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