Understand how Bitcoin can revolutionize the stock market

For Bank of England, "the main innovation is ' distributed accounting ' technology that allows a payment system to operate in a fully decentralized manner, without intermediaries , like banks "

The rise and new technologies created in the virtual currency market, especially Bitcoin, has enormous potential to reshape the entire financial industry. This statement was made by the Central Bank of England, the Bank of England, which sees in the way the currency trading system works the possibility of bringing news to be incorporated in the stock market.

The big reason for this projection is the public distribution accounting system, called "block chain". This is the mechanism that ensures that all bitcoin transactions are verified in a transparent, decentralized and secure manner, all without imposing transaction fees. For the BoE, this system is a "true technological innovation".

"The main innovation of digital currencies is the technology of 'distributed accounting' that allows a payment system to operate in a totally decentralized manner, without intermediaries, such as banks," said the British monetary authority in early September. The BoE even praised the way payments are made, showing that it is possible to carry out transactions securely without any central authority leading the business.

For the Central Bank of the United Kingdom, bitcoin can change the entire stock market (Disclosure)
For Bank of England, since most assets, such as stocks and bonds, already exist only as digital records, the "distributed accounting" system could transform the entire financial system. "It may be possible in the future - in theory, at least - that the existing infrastructure of the financial system can be gradually replaced by a variety of distributed systems," said the BoE.

Finally, the monetary authority concluded that digital currencies do not pose a significant risk to the UK's monetary stability, at least for the time being, given the small size of the business there. On the other hand, it presents a series of hypothetical risks that could bother you in the future, among them the great price volatility of these digital currencies.

On the other hand, the British BC is still a little hesitant about what the future awaits in this market. "If sharp price increases occur, it is possible that we will have problems and that may have an impact on the UK's financial stability," said the BoE.