The U.K. Funds has today announced that it will conduct an inquiry into appears around cryptocurrencies and blockchain technology.
Launched by the Treasury Committee, the search will take several angles including examining the role of cryptocurrencies in Britain, encompassing potential “opportunities and risks” for consumers, the business community and government.
The future impact of blockchain and distributed ledger technology on financial institutions and infrastructure is also down the magnifying glass, as is the matter of how to strike a regulatory balance between shielding consumers and enterprise without stalling innovation. In particular, the inquiry hand down “scrutinise the regulatory response” to cryptocurrencies from the government, the Financial Behaviour Authority and the Bank of England.
In an announcement, Member of Parliament (MP) Nicky Morgan, who is moderate of the Treasury Committee, said the committee will look at the potential perils that cryptocurrencies could pose, including price volatility, rhino laundering and cybercrime.
Morgan added:
“We will also examine the future benefits of cryptocurrencies and the technology underpinning them, how they can create innovative moments, and to what extent they could disrupt the economy and replace standard means of payment.”
The timing of the inquiry is “right,” according to Alison McGovern MP, Exchequer Committee member. “New technology offers the economy potential gains, but as recently proved, it may also bring substantial risks,” she said.
It’s time the government “consideration more clearly” about policies around the technology, she added.
UK parliament epitome via Shutterstock
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