According to a series of reports by the Bank of England, Bitcoin could pose a threat to financial stability in the UK should the digital currency's popularity take off (see the relevant reports hereherehere and here). However, the Bank says that most of the potential risks that could emerge should any digital currency attain systemic status as a payment system could be addressed through regulatory supervision of relevant parties.

What this means for you

The growth of Bitcoin may indicate that consumers are willing to use alternative, cheaper means of transferring money, even if it is less secure than traditional bank services. The real issue therefore, is to address how this new form of currency can be properly regulated and monitored to help it move away from the adverse publicity before Bitcoin can properly be embraced as an acceptable payment mechanism.