Bitcoin prices reached a new record high after the Bank of England set a date for the launch of its own cryptocurrency.
Bitcoin broke $68,000 (£50,150) for the first-ever time. This means that it has risen more than 110 per cent since the beginning of the year. Its previous record was set in October when it reached $67,700 (£49,000.920).
Apple boss Tim Cook, who claimed he has some crypto-currency and said that he was interested in the asset type ‘for a while’, helped to improve sentiment.
According to Bank of America, it is the most performing asset year so far. Analysts speculate that bitcoin investors are using it more frequently as a hedge against inflation.
JP Morgan stated in a note that they believe bitcoin is a better-inflation hedge than gold and was the main reason for the current rise.
The Bank of England warned last week that inflation would reach a peak of 5% early next year. Meanwhile, prices in the US are running high.
Yesterday, the Bank updated its position and said that it will launch a consultation to discuss the introduction of a central bank digital currency (CBDC).
The currency was dubbed “Britcoin” by the Treasury and Bank. However, they cooled the expectations by stating that it would take at least 2025 before the currency could be launched in the UK.
They stated that the UK CBDC launch date would be in the second decade. Officials described it as a “major national infrastructure project” that is meant to be used alongside bank deposits and cash.
Jon Cunliffe, the Bank’s deputy governor of financial stability, stated that “The Bank plans to publish a consultation next Year on CBDC. This is a critical step in our policy development. We also further our thinking about the pressing issues.
“What it will do, is provide a platform to allow interested parties and relevant organizations to engage with the key questions about the merits and development of CBDC and whether the public sector should move to a developmental phase.”
John Glen MP, Economic Secretary to Treasury, stated yesterday that the consultation would begin an open discussion about the possible role of a UK central bank digital cryptocurrency in the UK.
“I encourage everyone to participate in the discussion to explore the potential opportunities and understand the risks.
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