Bank Of England’s RSCoin: A Hybrid Digital Currency To Improve Global Trade
RSCoin, a cryptocurrency controlled by the Bank of England for the purpose of strengthening the country’s economy and global trade, combines the benefits of distributed ledger technology with the control of traditional, centrally managed currencies, according to The Deal Room, a financial news website. RSCoin was developed by University College of London researchers at the central bank’s suggestion. While RSCoin uses cryptography – making it tamper-proof and resistant to counterfeiting – the digital ledger used by the newly-developed cryptocurrency is entirely held within the confines of....
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The Bank of England (BoE), the central bank of the United Kingdom has sought a digital currency of its own. A centralized, completely central-bank controlled bitcoin clone in the form of a cryptocurrency called RSCoin. While financial institutions such as securities exchanges are openly favoring and investing in blockchain technology, central banks are going a step further in borrowing from bitcoin technology. Several central banks, including the recent prominent example of the People’s Bank of China, have revealed plans of developing their own digital currency. A report in the MIT....
On February 21, 2016, the Bank of England reported that it had partnered with researchers at University College in London to produce RSCoin, a digital currency designed for central bankers. Sarah Meiklejohn and George Danezis, two students from University College, created RSCoin which, they announced, offered a protocol superior to that of Bitcoin. The researchers said their work was a response to Bitcoin’s limited transaction throughput, which is capped at around seven transactions per second today based on the 1 megabyte block size limit and current network conditions. In comparison,....
The Bank of England has announced a plan to launch its own Bitcoin-like cryptocurrency. The cryptocurrency called RSCoin will also function on Blockchain, the distributed ledger system on which Bitcoin and other cryptocurrencies are built. Radical Shift from Traditional Crypto. Earlier, in January 2016, China’s National Bank also announced plans to launch a virtual currency. RSCoin was originally developed by researchers at the University College of London (UCL) which provides greater centralized control compared to Bitcoin and other cryptocurrencies. “RSCoin’s radical shift from....
The Federal Reserve is expected to outline how it intends to monitor FinTech innovations today in a research paper, according to a report from The Wall Street Journal. Even though the Fed has been visiting FinTech startups to understand what it is they do, the research is unlikely to hold any definitive decisions now. It is reported that the Federal Reserve is looking into banks’ decisions when they engage with FinTech firms to determine fraud or money laundering. Issuing a Digital Dollar? The Bank of England’s RSCoin, the Bank of Canada’s CAD-Coin, and Senegal’s eCFA digital currency in....
Despite all of the promises RScoin may hold for the Bank of England, this concept is a far cry from Bitcoin in every possible way. There is a growing interest in distributed ledger technology and digital currencies by central banks and other financial institutions all over the world. The Bank of England is looking to issue their very own digital currency – called RScoin – shortly, and has asked a team of researchers to make it happen. Centralized versions of Bitcoin are on the horizon, it seems, but can such a concept be even remotely successful? For many years now, banks and other major....