The disruptive ability of blockchain technology, especially its visible manifestation — the bitcoins — is well known. Central banks and banking systems across countries have been seized of the existing and possible impact of this technology. Several central banks like Bank of England (working paper 605 of 2016) and commercial banks have articulated their approach. It is pertinent to examine.One of the primary roles of a central bank is to preserve and protect the monetary system and ensure its smooth functioning. No gain saying, the widespread use of these currencies will alter the role of central banks.

Source: Economic Times May 09, 2018 01:52 UTC