The United Kingdom Parliament treasury committee yesterday, Feb 22 announced that it would be conducting an Inquiry into issues around Cryptocurrencies and their impacts on businesses, consumers, and UK investors. The Inquiry was sparked off by the recent cryptocurrency hype across the world and last year rapid rise and subsequent sharp decline experienced by the crypto markets since the New Year.
Member of Parliament Nicky Morgan, who is the chair of the Treasury Committee, told BBC that the Members of Parliament would look into how consumers, investors, and UK financial infrastructure might be better Shielded, without hindering the blockchain innovation.
Ms. Morgan told BBC: “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.”
Although cryptocurrencies such as Bitcoin have drawn a fair share of criticism, the technology behind them has been praised.
Nicky Morgan also told BBC that people are becoming increasingly aware of Digital currencies such as bitcoin, but people are not cognizant with the fact that they are unregulated in the UK, and there is no set legislature to protect investors or individuals.
Morgan also said that: “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.”
Britain Upper Chamber of the Parliament, the House of Lords, has recommended the study of the various possible applications of Distributed ledger technology or blockchain across government services.
Bank of England (BoE) Governor Mark Carney in his opinion said that Bitcoin had failed as a form of currency, but the back-end technology “Blockchain” that records and verifies crypto transaction might prove useful.