Bitcoins and Virtual Currency

Meeting: 
MQT on 2014-09-17
Session date: 
September 17, 2014
Reference: 
2014/3500
Question By: 
Fiona Twycross
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

What is the estimated financial cost of virtual currencies to the London Economy?

Answer

Answer for Bitcoins and Virtual Currency

Answer for Bitcoins and Virtual Currency

Answered By: 
The Mayor

As noted by a recent Bank of England report, digital currencies do not currently pose a material risk to monetary or financial stability in London or the United Kingdom, given the small size of such schemes. For instance, it is estimated that there is less than £60 million worth of bitcoins circulating within the UK economy, which represents less than 0.1% of sterling notes and coin and only 0.003% of broad money balances.