The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, has dropped significantly in overnight trading, as other major cryptocurrencies like bitcoin (BTC), Ripple (XRP), and BCash (BCH) fell in the range of 2 to 6 percent.
At press time, BTC is priced at US$7,228, down 1.28% over the last 24 hours of trading. ETH is currently trading at US$539 and XRP at US$0.57.
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The governor the Bank of England (BoE), says that the UK’s central bank is ‘open-minded’ about the possibility of a Central Bank Digital Currency (CBDC).
Speaking at a recent panel discussion in Stockholm Sweden on the future of central banking, Mark Carney, said that while he is not opposed to the idea of implementing a CBDC, it is unlikely that they will be issued anytime soon. The BoE governor added that cryptocurrencies do not perform the role of money.
Bank of England Governor Mark Carney speaking at a recent panel in Stockholm on the future of central banking. Carney stated that he is open to the idea of a central-bank-issued digital currency. (File Photo)
Carney’s latest statement is far cry from his previous dismissal of cryptocurrencies. In February of this year, the BoE governor said that cryptocurrencies are failing to fulfil their role as money.
“It [cryptocurrency] has pretty much failed thus far on… the traditional aspects of money,” Carney said at the time. “It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”
In 2016, the Bank of England embarked on a multi-year research program to explore the implications of a CBDC. Earlier this month, the BoE published a working paper, laying out various scenarios of possible financial risks and instability issues of using a CBDC.
The BoE is not the only central bank looking into the possibility of issuing a CBDC. Earlier this month, Norges Bank, Norway’s Central Bank, published a document that indicated its readiness to create a CBDC that will ensure confidence in the monetary system. The Bank of Canada and Riksbank, the central bank of Sweden, are also exploring the possibility of issuing CBDCs.