Osborne announces plans to explore the future of Bitcoin
George Osborne has announced plans to explore how cryptocurrencies such as Bitcoin can play a role in the UK financial system.
The chancellor has commissioned the Treasury to produce a report on digital currencies, examining their potential benefits and risks, which is set to be published in the Autumn.
Osborne said he aims to make the UK the "global centre of financial innovation". The study could lead to a change in the UK's relatively liberal regulatory regime.
The announcement was made at the launch of Innovate Finance, an industry body established to promote the interests of the UK’s financial technology sector. The group has received the backing of Canada Corporation and Canary Wharf Group.
“It’s only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that we’ll ensure Britain’s financial sector continues to meet the diverse needs of businesses and consumers, here and around the globe, and create the jobs and growth we all want to see in the future," said Osborne.
The UK has, so far, taken a relatively relaxed attitude to Bitcoin regulation, with digital currency news site Coindesk going so far as to say Britain is "one of the most attractive jurisdictions for Bitcoin businesses".
In March, UK Bitcoin bugs received good news when HM Revenue and Customs decided it would not levy 20 per cent VAT on the mining of Bitcoin.
HMRC said Bitcoin and other cryptocurrencies were exempt "because they fall within the definition of 'transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments."
Over 60,000 retailers worldwide now accept cryptocurrencies and the numbers continue to grow by the day.