Cryptocurrency inquiry launched by UK Treasury: Authorities all over the world are trying to get to the bottom of cryptocurrencies and blockchain technology. Many authorities want to find out if they can actually use the blockchain technology in their IT systems. Recently, UK Treasury department has also initiated an inquiry into cryptocurrencies as well as blockchain technology.
Aim of the inquiry:
The inquiry will be multifaceted. It will not just explore the underlying technology but also the role of cryptocurrency in Great Britain. It will also look into the risk as well as the benefits of cryptocurrencies from the point of view of consumers. Similarly, it will look into the usage of blockchain technology in government departments as well as for the business community.
The distributed ledger technology is already being used by variety of different financial institutions. Moreover, private as well as public companies are trying to figure out more ways in which they will be able to use the blockchain technology.
Recently, Member of Parliament Nicky Morgan clearly stated that the committee will also look into the risks which are involved in cryptocurrency investing and trading. Moreover, the committee will look into the details of money laundering as well as fraud which is being committed with the help of cryptocurrency. The Member of Parliament is also the chairman of the Treasury committee.
According to another MP Alison McGovern, the inquiry comes at an appropriate time. As newer technologies start to gain more exposure, it is necessary for the government to judge them and analyze them. She further added that it is necessary for the government to find out if there are any risks which are associated with the technology.
This inquiry is certainly not the isolated case of government looking into cryptocurrencies and blockchain technology. All over the world, many governments are viewing cryptocurrencies with skepticism. This is the reason why they are starting cryptocurrencies in order to find out if they have any systematic risk to the traditional financial system. On the other hand, when it comes to blockchain technology, governments are more optimistic about the usage of blockchain technology. They do not consider blockchain technology to be a systematic risk or a threat to the existing financial system.
Governments all over the world are looking into both of these technological innovations in order to better understand their incorporation into the traditional financial systems. It will be interesting to watch the results of this inquiry by the UK Treasury committee