When it comes to bitcoin and digital currencies, central banks might be considering the adage: “If you can’t beat them, join them.”
In a research paper published on Monday, economists at the Bank of England advocated that central banks issue their own kind of digital currency. Using the U.S. as a case study, they argued it could give a permanent boost to the economy of around 3%, as well as providing policy makers with more effective tools to tame financial booms and busts.
BOE economists John Barrdear and Michael Kumhof write that “reductions in real interest rates, distortionary taxes, and monetary transaction costs” would boost the economy.
Much like physical cash, digital currencies like bitcoin allow direct payment from one person to another, but they also have all the advantages of bank transfers, because large payments can be made instantaneously across the globe.
Read more at : http://www.wsj.com/articles/the-central-bankers-bold-new-idea-print-bitcoins-1468936751
"Print Bitcoins?" Bitcoins cannot be printed. What an irresponsible headline, which could be spreading FUD about Bitcoin, perhaps as an attempt to dissuade people from moving out of the faltering GBP...?
It's such exciting times!!!!
