The Chancellor George Osborne is expected to launch a review to assess how the UK could become a leading global centre for Bitcoin and other virtual currencies. According to the local media the plan is to set out measures intended to make Britain the “global centre of financial innovation”. The measure looks part of a mission to keep London as the capital of global finance.
In his pursuit to embrace the technology that gives financial innovation a new edge, George Osborne instructed Treasury officials to work on a study looking at the benefits and threats of digital currencies. Like most of the countries, Bitcoin or any other digital currency is still without any regulation.
Putting his views at London’s Canary Wharf later, he said that only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that assurance can be made that Britain’s financial sector continues to meet the diverse needs of businesses and consumers here and around the globe.
Part of his announcement says that he will bring a team of official from the government to investigate the potential for virtual and digital currencies such as Bitcoin as according to him encouraging innovation in the UK’s financial sector is beneficial. However, this does not mean that the team won’t explore and examine the potential risks.
More Than 60K Online Businesses Accept Bitcoin
As the popularity of Bitcoin is expanding day in and day out, the governments are willing to mend their ways to accommodate the financial innovation. The new effort from the Chancellor is aimed at facilitating the way for the digital currency that can help London remain the financial capital of the world.
Currently, there are more than 60,000 online retailers that accept virtual currencies around the world and the number is just going to expand further in the coming years. In such a situation no government can sit idle and not explore the avenue available. Also, regulation comes natural as fraudulent activities have taken place as well in the Bitcoin ecosystem.
The government of the UK will examine whether Bitcoin and other virtual currencies should be regulated and what could be the likely implications. Also, Mr Osborne is expected to outline plans to introduce legislation to help small and medium-sized businesses access alternative sources of finance that may include Bitcoin if clearance is given.
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