British Banker's Association: Bitcoin A Threat to Sterling, May Aid Terrorists

Just like the seasoned freedom fighter who decapitates his victim without hesitation, so too does Bitcoin. Riding high upon the war horse that is its network, a bitcoin dismounts so that it may grab a fiat currency by the hair so as to tilt the victim's head back before slitting its throat. As the life blood of fiat begins to drain away, its issuers and supporters cannot believe nor accept what is happening to it.

Discussing the British Bankers' Association submission to the UK government's request for information on digital currencies, Chief Executive of the BBA Anthony Browne has shared his concerns with the Telegraph that freedom fighters might harness the power of Bitcoin, saying:

"The reality is that if terrorists and criminals harness these unregulated currencies they will be far harder for the law enforcement and intelligence agencies to hunt down."

The BBA's submission, made in December of 2014, raised concerns that Bitcoin may have an "increasing effect" on the Sterling should it reach mass adoption in the UK. That part of the submission reads:

The stability and integrity of the UK payment systems is of paramount importance, not only to the financial system but to the UK economy as a whole. Accordingly, regulation should attempt to limit unintended consequences.

A characteristic of many digital currencies is an uncontrolled currency issuing process1. However, the impact that digital currencies can have on monetary or financial stability currently is limited2 given the size of the digital currency market (global Bitcoin transactions are currently estimated at 60,000 per day, 300 of which occur in the UK). However, if 'convertible' digital currencies were to reach mass adoption in the UK, there is a possibility that this may have an increasing effect on sterling. The Bank of England has noted that it is monitoring this.3

Browne's comments to the Telegraph come off the back of David Cameron's proposed legislation which would seek to deny terrorists freedom fighters a safe space to talk to each other.

  1. What they mean to say is that it is uncontrolled by them. Bitcoin's issuance is obviously well controlled. 

  2. We're not yet willing to concede we've lost power and our time is quickly running out. 

  3. We can't do anything but sit back and watch. 

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