Bitcoin or similar cryptocurrencies may boost national economies

19 July 2016

Nationwide implementation of the cryptocurrency like Bitcoin would help the economic growth and lead to the steady financial system while streamlining the process of sequential ups and downs, as noted by the Bank of England. According to the recent report, if a central bank looked for a blockchain or distributed ledger in an official bid that would significantly boost the economies of the world.

Overall deployment of that currency with the 30% share in the economy, for instance, of the USA before the economic slowdown would result in the GDP rise by up to 3% as it would cut the rates, some taxes and cost of financial transactions.

The same study states that the cryptocurrency would come into general use just as conventional cash functioning as the competitor of it. Virtual cash supported by the central banks would go further and contribute to the recovery of the commercial processes, while the government would have other ways of managing the financial policy.

On the other hand the research notes that the introduction of the new form of currency would affect the stability of the financial system, and one of the results would be a shift from the conventional cash deposits of account holders in the banks to the digital currency. At the same time digital currency ensures better security for the banks.

Meantime, digital money allows banks to manage their interest rate issues by lowering them below the basic line compared to the conventional cash economy, when consumers are used to keep their banknotes in piles at home.

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