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# The Bank Of England is scrapping plans to issue it's own digital currency, citing concern that it could destabilize the financial system.

 

BoE has been researching cryptocurrency since 2015, and says they plan to continue to research in the area. However the bank fears that people would migrate to it's cryptocurrency while simultaneously closing commercial bank accounts and dropping paper money. Essentially a bank run would ensue.

It just goes to illustrate the fragility of reserve banking and the devastating collapse that would result if the house of cards falls. At the same time the central bank indicated that they do not view Bitcoin as a threat to traditional currency. They also praised the benefits of block chain technology. Time will tell if their stance will change.

Source: https://www.ccn.com/bank-of-england-drops-plans-for-its-own-cryptocurrency-fearing-instability/