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Bank of England and CBDC: what is Britcoin

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Britcoin , not to be confused with Bitcoin, is the name given by the British Chancellor of the Exchequer Rishi Sunak to the hypothetical digital currency of the British central bank. 

In fact, it’s also the name of an old cryptocurrency project that ‘s been abandoned for years. 

The British pound

The British central bank, Bank of England (BoE), is the one that issues and manages the British pound (GBP), which is one of the oldest fiat currencies still in circulation, having existed since 1489. 

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The bank has been studying the feasibility of a natively digital version of the pound since last year . It would be a so-called CBDC, that is a central bank digital currency (Central Bank Digital Currency), but from a strictly financial point of view it would be the exact same thing as the current pound, only it would be based exclusively on a public digital register. 

Therefore, it would not be a cryptocurrency, but only a natively digital version of the British fiat currency already widely traded on the markets, especially in digital format. 

The progress of work on Britcoin

BoE is still considering whether to launch its CBDC, or “Britcoin” as Sunak called it, and has not yet made a final decision on whether to proceed with its creation and market distribution, or not. 

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The fact is that the bank is worried that the increasing spread of stablecoins , or cryptocurrency tokens collateralized at par in fiat currency, will end up creating problems such as a possible wave of withdrawals of money from banks or to jeopardize financial stability. . 

To be sure, there are very few sterling-pegged stablecoins on the market today and they have extremely limited use, but those pegged to the US dollar are still widely used around the world. 

However, a CBDC could also have other advantages over using a classic non-natively digital fiat currency, so Britcoin could introduce some important innovations in the British financial landscape. 

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Britcoin and the benefits of a CBDC

First, the fact that it is a currency that can only be exchanged with digital transactions recorded on a centralized register managed by the central bank would make it much better in terms of tracking the transactions themselves.

Furthermore, given that all intermediaries that use fiat currency are required by law to identify and verify the identity of users, in this way it would be possible for the central bank to trace the names of all those involved in all transactions. 

Smart contracts could also be uploaded to the central digital ledger, with the central bank acting as guarantor of the fact that they are executed and used correctly. 

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Only cryptocurrencies and tokens can use smart contracts, while they are completely absent on fiat currencies. 

Britcoin would allow the central bank itself to have complete and absolute control over its issuance, while now commercial banks can also put fiat currency, albeit under the control and supervision of the central bank. 

Differences with traditional currency

The main difference between the Britcoin and the current pound is that there is currently no single ledger on which all transactions are recorded. 

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Indeed, as far as banknotes and coins are concerned, there is in fact no record of transactions. 

Instead, all transactions of a CBDC would be recorded on the single digital ledger managed by the central bank, effectively obliging all intermediaries, including other banks, to use it as well. 

The second difference is that it is not possible to create self-executing smart contracts with the British pound nowadays. At most they can be created using GBP-based stablecoins. 

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Differences with cryptocurrencies

The main difference between CBDCs and cryptocurrencies is that the latter have a distributed and decentralized register , not controlled and managed by any person, except by the open source computer protocol with which the software for their use is created. 

Since it is absolutely unthinkable that a central bank’s digital currency could be based on a decentralized ledger over which the central bank itself could have no power, this difference is in fact unbridgeable. 

Furthermore, precisely because they are managed in a decentralized way, no one has the power to intervene to block, limit, modify, or delete cryptocurrency transactions, while the BoE will have full power to block, limit, modify, or delete transactions in Britcoin. 

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When will Britcoin arrive?

To date it is absolutely impossible to give a date of the debut on the British CBDC markets. Indeed, it is not even possible to say with certainty that sooner or later it will surely see the light. 

The only things that can be said about it are that it certainly won’t be released anytime soon, but at the same time it seems to be very likely that sooner or later it will be.

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Bitcoin Drops as China Declares Crypto-Businesses Illegal

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  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

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Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

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Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

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Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

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“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

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In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

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However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

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“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

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If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

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“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

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