Bitcoin was the first cryptocurrency, and along with its popularity, it has also got a lot of shortcomings. From slow transaction speeds (not considering the lightning network), inefficiency and scalability problems have created a lot of problems for the currency. This is why the Bank of England says that any central bank digital currency (CBDC) will be better crypto than Bitcoin. Now that is a substantial claim, but we won’t know until the banks come up with something.
Is better crypto than Bitcoin a possibility?
The fintech director of the Bank of England had recently given a speech regarding crypto and CBDCs. The speech was to help people understand the bank’s take on any such currencies in the future. Tom made it very clear that the bank is not very committed to the development of a digital currency. He also said that they would prefer having cash as long people want to use it.
The bank thinks that Bitcoin’s technology and performance are nowhere near to how they see their CBDC. In fact, the proof of work consensus of Bitcoin makes it a big problem for the environment. And it is very probable that the bank will not use anything similar. This single problem of Bitcoin has also pushed Tesla not to accept the currency. Like Tesla, we could even see other companies reverse their take on Bitcoin.
The basis for a better alternative
According to the fintech director of the Bank of England, their CBDc will be focused on energy efficiency. This will help them more towards a net-zero economy. The bank also plans to combine data and analytics technology to help the bank optimize the system even better, leading to a more efficient solution.
What are your thoughts on the bank’s claim to be able to make better crypto than Bitcoin? And do you think they will actually try? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.