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"Given that in this extreme scenario all payments would take place outside the British pound as currency basis for practically the whole of the economy, the ability of the Bank to influence pricing and real activity would be seriously handicapped", explained verbatim in the report. "Where an adoption limited as payment system is achieved, it is unlikely that you undermine the ability of the Bank to ensure monetary stability. Aglo that could, in theory, change if it abandons the pound sterling in favor of an alternative currency in a significant fraction of the economy, a highly unlikely scenario today,"continues. In this sense, he says that currently it is not a major risk due "to the small size of these systems", but adds that this may change if they grow "significantly". "The Bank continues to monitor digital currencies and risks posed to its mission. If a subgroup of people held transactions exclusively in a digital currency, then the ability of the Bank to influence the demand for this group may potentially be affected", admits. The text quotes the price volatility and the risk of diminishing returns for miners as problems that will keep the cryptocurrency as a payments infrastructure under the opinion of their authors, auxiliary. The report shows that the Bank has a very technical about the functioning of Bitcoin vision, since they have also published another report entitled "Innovations in payment technologies and the emergence of digital coins", written by the same authors. In both texts, they point out that the technology "blockchain" has a great potential for application in other areas and recognize the Protocol Bitcoin as a "genuine technological innovation." "The key innovation in digital currencies is 'distributed accounting' which allows you to operate a payment system in a decentralized manner, without intermediaries such as banks. This innovation is based on advances in a range of disciplines that include cryptography (secure communication), theory of the game (strategic decision making) and peer-to-peer network (network of connections without a central coordination)."


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On everyone's lips, Bitcoin, the currency of the Internet, garnered praise, criticism and suspicion in equal parts. With numerous advantages over traditional payment systems, Bitcoin presents, as any self-respecting, a somewhat darker back that has caused, for example, that Thailand has banned transactions with Bitcoin within its territory. A first step which is expected to give other Nations. But first of all we need to answer some questions, which will be the reason why you have arrived to this article: what is Bitcoin? How does it work? is it legal? Answer, easily, to these and other questions about Bitcoin, the currency of the Internet. What is the origin of Bitcoin? Bitcoin has its origin in the year 2009 when Satoshi Nakamoto, pseudonym of one or more persons, decided to launch a new electronic currency whose peculiarity is that it was only used to carry out operations within the network of networks. Bitcoin refers to currency as the Protocol and to the P2P network which is supported. So, what is Bitcoin? Bitcoin is a virtual and intangible currency. I.e., that not be touched in any of its forms as it happens with coins or banknotes, but it can be used as a means of payment in the same manner as these. As is the case with the money we have in our Bank the Bitcoin increase or decrease our personal account as we undertake revenue or expenditure, the only difference is that the possibility to monetize them, there is as it is the case when, for example, we are withdrawing money from an ATM. What are the features that make different Bitcoin?