As far as the relationship between cryptocurrencies and the government go, it’s not been easy sailing for the likes of Bitcoin. Having particularly been regulated by central banks in an attempt to profit of the trade of this currency, the launch of RSCoin signals a different view Britain has on the future of Bitcoin. One of the first of its kind, RSCoin is the only state backed and launched cryptocurrencies set to make waves in the UK before it moves on to international markets.
We introduce RSCoin, a cryptocurrency framework in which central banks maintain complete control over monetary supply, but rely on a distributed set of authorities, or mintettes, to prevent double-spending. While monetary policy is centralized, RSCoin still provides strong transparency and auditability guarantees.
The government backed coin aims to solve many of Bitcoin and crypto’s inherent flaws to create a solution that can be integrated into the current financial system. Aiming to counter the many troubles the bank has had in dealing with the Sterling, a negative interest rate and falling value has forced the bank to make controversial decisions on the future of the pound, which they aim to resolve in the cryptocurrencies developed as it inherently has no interest rate unless staking is invoked.
To conclude the Bank has faith that the RSCoin could also rival the likes of the USD as it believes as the economy grows so can the coin proportionately. You too could experiment with RSCoin once it becomes internationally available to evaluate its potential to rival the likes of Bitcoin. Currently its centralized nature does mean the Central bank has ultimate control over markets and such but the increased popularity will tip the power back into the hands of users. RSCoin does deal with some of the flaws of Bitcoin and litecoin and the bank hopes it can become the reserve currency of the future.