Bitcoins and Cryptocurrencies, in general, are the new things in trend, but few people know what impact they can have on us. Some people see investment opportunities, others are skeptical of the whole thing being a scam, the government is fearing over terror funding, and others are just confused. And so, the Treasury Committee has taken up the job to start inquiring about the matter and gain some perspective.
Mark Carney, the governor of the Bank of England is of the opinion that these digital currencies have failed to establish themselves as an alternative form of currency, but the technology behind them that is used to verify and record the chains of a transaction has potential.
Moreover, in the interest of the people looking at Bitcoins as an investment opportunity, Warren Buffett warns about an inevitable, “bad end.”
Keeping all these in light, the current agenda of the MPs is to see to it how consumers and Britain’s financial infrastructure can be kept safe from harm, without interfering with innovation. The huge rise and fall in the Bitcoin value that happened last year brought many frowning eyes upon cryptocurrencies, call them a “vehicle for criminals and tax evaders.”
The committee has set a bunch of question based on which they will make their stance regarding cryptocurrency. Here is a quick peek at the questionnaire:
- Can digital currencies change traditional means of payment?
- How much disruption is to be expected from cryptocurrency to the normal workings of the country’s economy as well as the public sectors?
- What risks and benefits can come out from cryptocurrency for consumers, businesses, and governments?
- What regulatory steps are being taken by other governments and what can be learned from them?
And much more…
To get the gist of the questionnaire you can look to what Ms Morgan had to say:
“The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and governments, including those relating to volatility, money laundering, and cyber-crime.
We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”