A taxi and buses queue outside the Bank of England in London © Luke MacGregor / Reuters

According to a BoE report, a new digital currency could boost economic output by around three percent “due to reductions in real interest rates, discretionary taxes, and monetary transaction costs.” It could also help maintain financial stability and provide policy makers with more effective tools to smooth financial booms and busts.

Central banks across the developed world, including the Bank of England and the Bank of Canada, are studying the potential of introducing a digital currency. If they decide to issue digital cash and make it available to the general public, money would exist electronically outside of bank accounts in digital wallets, like physical banknotes. That could radically reshape the present financial system.

Source: http://www.miragenews.com/bank-of-england-considers-issuing-its-own-digital-currency/

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