We are carrying out research into digital currencies and the technology that supports them.
Cryptoassets or ‘cryptocurrencies’
Cryptoassets combine new payments systems with new currencies that are not issued by a central bank. Examples of privately issued digital currencies include Bitcoin, LiteCoin, Ether (Ethereum) and XRP.
Our Financial Policy Committee has assessed cryptoassets and concluded that they do not currently pose a risk to monetary or financial stability in the UK. However, cryptoassets do pose risks to investors and anyone buying cryptoassets should be prepared to lose all their money.
We continue to monitor developments in this area. Most recently, the Bank of England has been part of the Cryptoasset Taskforce, working alongside HM Treasury and the Financial Conduct Authority to explore cryptoassets and the underlying technology, assess the associated risks and potential benefits, and set out the path forward with respect to regulation in the UK. The findings of the taskforce (published 29 October 2018) can be found here. More broadly, we have written about the economics of digital currencies and innovations in payment systems and the emergence of digital currencies.