Around the same time as Accenture’s call for the UK government to regulate bitcoin wallets, Citi suggested that officials should look into creating their own digital currency. This has been revealed in the Treasury’s release of a document entitled “Digital Currencies: Response to the Call for Information”
This report summarizes all the submissions received by the government after it urged the public to assist them in understanding the workings of the digital currency industry. The Treasury received more than 120 responses and has outlined the proposals and the government’s next steps.
Local Digital Currency
Citi, which is an American multinational bank based in Manhattan, mentioned that the rise of the digital currency is inevitable and the UK government might be in the best position to spearhead the move to an official one. After all, the UK is one of the more open-minded nations when it comes to approaching developments in the bitcoin industry, unlike others that have banned its use.
“Due to the potential benefits, we believe the adoption of Digital Money is inevitable,” noted the Citi document. “While we believe that the use of Digital Money is certain, the future of specific cryptocurrencies such as Bitcoin is less clear.”
“The greatest benefits of digital currencies can be realized through the government issuing a digital form of legal tender. This currency would be less expensive, more efficient, and provide greater transparency than current physical legal tender or electronic methods.”
Citi also recommended that the UK government work with financial regulators in other countries to create a common platform or legal infrastructure to govern the cryptocurrency industry. “The decision by a government to issue its own digital money would resolve the majority of national AML, KYC and sanctions concerns,” adds the Citi document. “Clearly this creates possible privacy concerns on the side of the citizen, but it could be offset by the additional value digital money provides.”