As many counties of the world are rooting for the evolution of digital currency, some counties are already developing their digital currency, just as we have eNaira in Nigeria. The United Kingdom has also followed that path, with the creation of Britcoin. This is the digital currency that the British government is mulling over to serve as a new form of fiat currency.
Britcoin, also called “dubbed Bitcoin,” is a centralized (government-backed) cryptocurrency. Its development follows a series of turbulence in the crypto market.
History Of Britcoin
Stemming from a software company, Intersango, its service was launched in 2011. Having hit a debacle in the establishment of a strong financial connection in the United Kingdom, Intersango got a rebrand into Britcoin Exchange Intersango in August 2011.
The exchange was reputed for being the first Bitcoin exchange in the United Kingdom to support/accept trades in GBP. British traders could easily trade Bitcoins by entering buy or sell orders into an order book, in which Britcoin serves as an escrow for the money.
Britcoin is a self-acclaimed escrow that reduces verification time from 10 minutes to a few seconds while providing a 5% annual interest rate to its investors.
What Will Be Britcoin Price?
Britcoin has been identified with a price. We can see that Britcoin’s price has already been established. As of the time of writing this article, Britcoin is valued at $0.002583. Similar to the determining factors for the price of other cryptocurrencies, supply and demand are critical to Bitcoin’s price curve.
Consequently, every financial institution in support of its construct, including the government, will adopt persuasive means of convincing people about its numerous benefits and merits.
Benefits Of Britcoin
1. Electronic transaction is the new norm in the financial world, and as such, people would be able to make use of the Bank of England’s currency directly with Britcoin.
2. The creation of Britcoin would in some way reduce the costs and earnings for commercial banks. Also, there will be an end to the risk of money being by an insolvent commercial bank.
3. The advent of Britcoin would distort the linkage between bank customers and the Bank of England.
Britcoin Vs. Bitcoin
Britcoin is a cryptocurrency created by the British government and it is residual in the United Kingdom. On the other hand, Bitcoin is a decentralized cryptocurrency whose function is independent of any central regulation/monitoring.
Just like other cryptocurrencies, Britcoin enables traders to perform secure and anonymous transactions without the necessity of a bank account. Britcoin in turn offers people a better choice over the British pound (GBP).
Meanwhile, Bitcoin operates with peer-to-peer software and cryptography. Also, a public ledger (blockchain) records every Bitcoin transaction, and copies are stored on servers across the world.
Digital currency is raving in the global setting and countries like the United States and China are trying to create their digital currencies. Let’s not forget that the digital euro is being considered. Britcoin is still in its early stage, and the decision is yet to be made on whether or not to implement the digital currency in the United Kingdom.