Bank of England to Launch its own Bitcoin Clone

The Bank of England is looking to issue their very own digital currency, called RScoin, and it has asked a team of researchers to make it happen.

Although the common perception of banks when it comes to Bitcoin and digital currency is that they are “too dangerous for consumers to get involved in”, the opposition seems to dissipate since these same parties started taking a keen interest in private blockchains to enhance their infrastructure. The Bank of England, for example, wants to take matters one step further and issue its own centralized version of Bitcoin.

But there is a significant difference between Bitcoin as people know it, and what Bank of England wants to achieve. RScoin, as this initiative is called, creates a form of digital cash that cannot be tampered with or counterfeited, because it provides a lot more centralized control. The Bank would be the sole party controlling this distributed ledger, and they can control the money supply as well.

Unlike Bitcoin, which has a money supply limit of 21 million, the RScoin could be issued an unlimited amount if the Bank wanted to. The role of processing the transactions could be filled by large commercial bans, and allow the system to handle a very high amount of transactions per second.