Bank of England statement:
The Bank of England did notice the innovation in bitcoin’s technology, particularly its decentralized payments system and public ledger, averring that the ladder could fundamentally alter the way payment systems work and proves that digital records can be securely stored without any central authority.
“The key innovation of digital currencies is the ‘distributed ledger’ technology that allows a payment system to operate in an entirely decentralized way, with no intermediaries such as banks,” the BoE’s quarterly report stated. “It may be possible in the future — in theory, at least — for the existing infrastructure of the financial system to be gradually replaced by a variety of distributed systems.”
It added: “This development could allow any type of financial asset, for example shares in a company, to be recorded on a distributed ledger. Distributed ledger technology could also be applied to physical assets where no centralized register exists, such as gold or silver.”
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