|Publisher||House of Commons|
|Link||View Research Paper|
In February 2018, the Treasury Committee launched its Digital Currencies inquiry to example cryptoassets. The purpose of the inquiry was to:
• Examine the role of digital currencies and cryptoassets in the UK, including the opportunities and risks digital currencies may bring to consumers, businesses and the Government (and associated bodies)
• Consider the potential impact of distributed ledger technology (also known as blockchain) on financial institutions and financial infrastructure
• Evaluate the regulatory response to digital currencies from the Government, the Financial Conduct Authority (FCA) and the Bank of England, and how regulation could be balanced to provide adequate protection for consumers and businesses without stifling innovation.
A variety of written and oral evidence and research was given in regards to cryptoassets. This paper outlines them all. Most interestingly, the advantages of cryptoassets seem to be undeniable.
In his speech on The Future of Money, the Governor of the Bank of England, explained that “in the depths of the global financial crisis, the coincidence of technological developments such as cryptoassets and collapsing confidence in some banking systems sparked the cryptocurrency revolution.”
Transacting with cryptocurrency means that there is no reliance on a central bank issued fiat currency. Advocates claim that transacting through these assets is more trustworthy than centralised fiat money as crypto-assets are “immune from […] debasement [and] its use is free from risky private banks”.