Committee to consider role of digital currencies

The role of digital currencies in the UK is set to be considered by the Treasury Select Committee today (01/05/18).

In the first scheduled evidence session, the Committee is also due to look at the potential impact of distributed ledger technology, such as Blockchain, as well as exploring a proportionate regulatory response which protects without stifling innovation.

The evidence session follows the release of an inquiry into Digital Currencies which launched earlier this year.

Digital currencies like Bitcoin saw a surge in popularity in 2017, with both recognition and market value growing rapidly in short space of time. Whilst its volatility and security have been scrutinised, suggestions that it could be used within the property transaction process have been made, mainly due to its unified quality. Whilst, the instability of its market value casts doubt on the likelihood of its use in the property market, that’s not to say it hasn’t been used in transactions.

Blockchain has also been much talked about over the past year, with the part it could play in the home buying process seeming much more likely. In addition to recording cryptocurrency transactions, the technology can also be used to authenticate all kinds of digital information, with ownership traced back to initial creation. As such, where conveyancing is concerned, blockchain can be used to validate mortgages and registration of land titles for example.

As well as looking at the role of the various technology in the UK, the Committee is due to consider how it’s widescale use could disrupt the economy, what processed the government would need to implement, in addition to what could be learnt from practices overseas.

The first oral evidence session is scheduled to be held at 10.00 am today.

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