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#General Tech

UK Gov launches ‘Call for Information’ on benefits and risks of digital currencies

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The UK Government has launched ‘Call for Information‘ on benefits and risks of digital currencies including Bitcoin, Litecoin, others – one of the moves it claims will support growth of Britain’s emerging FinTech sector and will also enable customers to take advantage of the latest innovations when they make payments.

The government acknowledges that digital currencies have the potential to deliver real benefits to customers and heeds to the fact that supports of the digital currency have been voicing the benefits of the currencies including faster payments, increased convenience, greater security, and mean lower fees for businesses as compared to traditional means of payments.

The government expresses concerns over how these digital Currencies aren’t protected like traditional currencies. Further it also notes that the degree of anonymity and borderless features that these currencies provide could potentially be exploited for illegal and illicit activities.

These are the reasons that the UK Government is asking for views on the “potential risks posed by digital currencies, including possible risks to customers and financial stability.”

The Call for Information is seeking views from a wide range of sources including the public, the financial services industry, regulators and law enforcement agencies, FinTech firms and others on the potential of digital currencies to deliver new, helpful ways for customers to make payments and how they can encourage innovation in our world leading financial sector.

The five reasons why the government is calling for information are:

  • To promote innovation and competition in the banking sector
  • New types of digital currency are being developed and digital currency businesses are setting up in the UK
  • To hear about the benefits of digital currencies for the people that use them and the wider economy
  • To hear about the risks that might come with using digital currencies
  • To hear your views on whether regulation of digital currencies is required