Bank of England will Set Up New Payment System using Innovative Blockchain Technology

The Bank of England has published a blueprint to indicate its vision for a renewed Real Time Gross Settlement (RTGS) service. The new service is meant to deliver a stronger, flexible and more resilient payment settlement system for the United Kingdom. This application of blockchain technology is in view of the fast changing payment system in the UK.

The plan to develop a DLT-compatible system was first announced in May 2017, the bank stated that the service would offer a flexible range settlement models which would enable the payment infrastructure in the UK to access the central bank’s money. According to the blueprint, “the Bank has concluded that Distributed Ledger Technology (DLT) is not yet sufficiently mature to provide the core for the next generation of RTGS, it places a high priority on ensuring that the new service is capable of interfacing with DLT as and when it is developed in the wider sterling markets.”

Payment Methods Using Innovative Blockchain Technology

The article published on the Bank’s website disclose that the Bank of England is partnering with a some technological firms like Baton Systems, Clearmatics Technologies Ltd, R3 and Token who are developing payment arrangements using innovative technologies.

Speaking on the role of the Real Time Gross Settlement (RTGS) service, the published article stated that the RTGS service is made to respond to fast changing financial system while also making user demand easier and more secure. It also disclosed that the new system would be resistant to cyber-attacks and would incorporate regulatory and monetary policy tool in the near future.

In a related event, Philip Hammond the U.K Chancellor of the Exchequer announced last week that the United Kingdom Government would set-up a Crypto Assets Task Force. The office of the Treasury said that the Chancellor will unveil the task force, which will include the Bank of England and the Financial Conduct Authority, at a speech in London on Thursday at the government’s second International Fintech Conference. Representative of the Treasury are also expected.

Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.

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