Bank of England, The Economics of Digital Currencies (Sept. 2014) (full-text).
This article examines the economics of digital currencies and presents an initial assessment of the risks that they may, in time, pose to the Bank of England's objectives for monetary and financial stability.
This article argues that the incentives embedded in the current design of digital currencies pose impediments to their widespread usage. A key attraction of such schemes at present is their low transaction fees. But these fees may need to rise as usage grows and may eventually be higher than those charged by incumbent payment systems.