Could bitcoin become the ultimate in Alternative Finance?

  • bitcoin495995_640.jpgIf he has heard of ‘Bitcoin’ at all, the average man in the street could be forgiven for dismissing the very idea of an electronic, or ‘virtual’, currency as unnecessary or as a concept too difficult for most ordinary folk to grasp. What’s wrong with the pound? Isn’t Bitcoin just the latest speculative toy for the money traders in the City to play with?

    Not quite. It is perfectly possible that so-called ‘cryptocurrencies’, like Bitcoin, have a usefulness and significance far beyond their apparent face value. In much the same way as the internet has revolutionised the way the world now accesses information, it is no exaggeration to say that digital currencies have the potential to revolutionise the way we pay for goods and services. The enthusiasts believe they could very easily and quickly become the new norm.

    Certainly the Bank of England (BoE) is taking that possibility very seriously indeed. A recent study by the BoE concluded: “Cashless forms of payment, like the cryptocurrency, Bitcoin, when combined with mobile technology, may reshape the mechanisms for making secure payments.”

    The main attraction is that, unlike traditional currencies, alternatives like Bitcoin allow a direct exchange of payment for goods or services without the need for third party (e.g. central bank) involvement. Taken to its logical conclusion, our domestic banks could even create their own electronic currencies which, in time, could replace the use of bank notes.

    The debate is not confined to the UK, of course – the subject of ‘digital currencies’ is attracting interest worldwide. However, there are concerns that such new systems, popular and efficient as they might prove be, must not be allowed to compromise the ability of Central Banks to control underlying national currencies. Furthermore, the systems must also be able to withstand any attempts to breach security. The BoE’s ‘One Bank Research Agenda’ is tackling just those issues.

    However, let’s assume for a moment that all the obstacles and objections can be satisfactorily overcome. It would not take a huge leap of imagination to link the revolution taking place in ‘Alternative Finance’ with that about to take place in ‘Alternative Currencies’ – arguably, a marriage made in Heaven. Might we see an established Alternative Finance platform forge a Bitcoin union in the not-too-distant future and join some of the early adopters like BTCjam and First Global Credit?

    As the Finance Minister recently said: “It is 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”.

    Well said, that man.

    Want to understand more about the basics of BitCoin? There is a useful video from CoinDesk here.

Related articles

  • Read More

    Consumer debt rises while businesses save

    Soaring levels of consumer debt are evidently causing the Bank of England, the Government and others in authority some sleepless nights. According to a recent report in The Guardian, the number of...

  • Read More

    Liberis and Sage launch Sage Pay Business Finance

    Sage Pay has teamed up with alternative business finance provider, Liberis,to give Sage customers access to flexible financing for the first time....

  • Read More

    ArchOver receives FCA authorization

    ArchOver, one of The Marketing Eye’s longest standing clients in the alternative finance sector, has been granted full authorisation by the Financial Conduct Authority (FCA). The news represents a...

  • Read More

    Australian Budget sets scene for FinTech growth

    The latest Budget statement from ‘down under’, on May 9, reaffirmed the Australian Government’s intention to turn the continent into a global fintech centre....

  • Read More

    Insurtech Asia - the insurance sector is ripe for disruption

    The Insurance industry, which for generations has relied on long-established methods and processes (e.g. actuarial tables) to price policies and create a vast store of historic wealth for the...

  • Read More

    InsurTech needs to learn from Altfi and FinTech

    The winds of technology-induced change have been ripping through the financial service industries for quite a while now – banking and fund management being prime examples – but up until now the...

  • Read More

    FinTech as a force for good

    Kids, they say, grow up quickly and nowhere is this more true than in FinTech. Barely five years ago, the phrase wasn’t even invented. Now it is the collective noun for billion dollar enterprises,...

  • Read More

    Insurance Industry jobs could be lost to robots and AI

    Speculating on how far the robot revolution could go is nothing new – Hollywood has been producing apocalyptic films for decades showing machines ruthlessly taking over from humans as masters of...

  • Read More

    What is a bank?

    One of the recurring themes at this year's AltFi Europe event, organised by the excellent AltFi team, was a quest for the definition of a bank, or more particularly a bank of the future. Is it any...

  • Read More

    Giles Andrews' appointment marks another step on P2P’s road to maturity

    Students of the history of finance may one day look back on Giles Andrews’ appointment to the Chair of MarketInvoice (MI) as a major milestone in the evolution of the P2P sector....

Take the first step

To find out more about how we can help you grow faster, please get in touch. We'd like to hear from you.  Or try our instant marketing healthcheck, it's free!

Quick Contact

Quick contact

Close

Contact us

T 01825 765617

E hello@themarketingeye.com

Our offices

Full details of our offices in London and Uckfield more

Request a call

Close
'; ';