Call our team +44 (0) 207 566 3939

Blog

BITCOIN role to be explored by the UK Government

BITCOIN role to be explored by the UK Government

by | Aug 6, 2014 | Blog, Business News, Economy, Uncategorized | 0 comments

The Chancellor of the Exchequer, George Osborne, is due to unveil a plan which could see the British government exploring the role that digital currencies such as Bitcoin could play in the existing financial system and whether they need to be regulated. The measures included in the plan are intended to make Britain the global centre of financial innovation.

The growing popularity of Bitcoin has sounded alarm bells in the regulated financial system and as it is not controlled by a central bank it is therefore much more difficult to regulate.

A Bitcoin is a new type of money, it is completely virtual and can be used to buy products and services just like an online version of cash but is currently limited by the small number of shops and retailers that will accept it.

Currently there are 3 main ways to get a Bitcoin:

– You can buy Bitcoins using real money. The current value of one Bitcoin is approximately £500.

– You can sell something and receive payment in Bitcoins

– Or they can be created using a computer, this is called “mining”

Bitcoins have become popular due to the fact that some people like the fact that Bitcoin is not controlled by the government or banks, which in turn means there are no taxes or bank fees to pay, at least for now.

People can also spend their Bitcoins anonymously and although the transactions are recorded publicly, unless someone knew your Account number it would be almost impossible to check on your transactions.

Every transaction is recorded publicly so it’s very difficult to copy Bitcoins or make fake ones or even spend ones you don’t own.

It is possible to lose your Bitcoin virtual “wallet” or delete your Bitcoins from your phone or PC and lose them forever. This is one of the main drawbacks of the current system and there have also been thefts from websites that let you store your Bitcoins remotely.

At the moment the value of Bitcoins goes up and down a lot, so it’s impossible to say whether it’s safe to turn your ‘real’ money into Bitcoins.

Speaking at London’s Canary Wharf , the Chancellor said that it is “only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that we’ll ensure Britain’s financial sector continues to meet the diverse needs of businesses and consumers here and around the globe”.
He also announced the government is to investigate the potential for virtual and digital currencies such as Bitcoin to encourage innovation in the UK’s financial sector, while also examining their potential risks.

More than 60,000 online retailers now accept virtual currencies worldwide and the growing popularity has seen backers of the currencies push for greater mainstream adoption. However, their use has also been linked to illegal activity online.

BBC technology correspondent Rory Cellan-Jones said: “Enthusiasts say it is the future of money, detractors claim that it is extremely volatile and is used mainly by drug dealers and money launderers.

“Now the government says it will examine whether this and other virtual currencies should be regulated, how they could help stimulate innovation – and their potential risks.”

Blog Categories

Contact Details

Tel: 0207 566 3939

Fax: 0207 566 39352

Sales: office@capital-office.co.uk

Support: support@capital-office.co.uk

Our Location

Capital Office
Kemp House
152-160 City Road
London, EC1V 2NX

Opening Hours

Monday - Friday: 9.00AM – 5.00PM
Saturday: Closed
Sunday: Closed

What Does a Company Director Do?

What Does a Company Director Do?  The role of a company director does not end at simply establishing a business address or projecting motivational predictions about the company’s growth. A company director is required to recognise and fulfil a number of key roles. A...

This Is How to File a Confirmation Statement

This Is How to File a Confirmation Statement Whether your business is the pride of a remote UK postcode, or you’ve registered your company at a more established business address, you must file a confirmation statement at Companies House. A Confirmation Statement...

All You Need to Know About Limited Company Shares

If you’re set to launch a company limited by shares, it’s important for you to understand all there is to know about these limited company shares and what they mean for your business. Before you begin working via your prestigious registered office address, take note...

Appointing and Removing a Company Director

There may be a number of reasons you’ll want to remove your existing company director and/or appoint a new individual to the role. Whether you’re planning a major reshuffle at the top for the sake of changing course of your limited company’s ethos, or an individual is...

Where Do I Send My Stock Transfer Form?

Congratulations! You’re either a newly formed business, or you’ve been running your brand from a reputable business address for some time. But with the plaudits comes the pressure; not least the overwhelming number of documents you must process and submit. And when...

7 Important Roles of a Company Director

You may be the proud owner of a new business, functioning from a credible business address, and envisioning a bright future ahead. But if you’re unsure about exactly what a company director’s role entails, then you may find yourself hindering your company’s progress....

In a hurry and just want some advice?