Blockchain technology is being used by several companies and industries around the world. Even banks and governments are using and testing the technology. Now, the Bank of England us undertaking a proof-of-concept (PoC) in order to better understand how blockchain technology would work with the Real Time Gross Settlement (RTGS) service.
Bank of England Uses Blockchain Technology
The so called, Real Time Gross Settlement systems, are special payment systems where banks transfer funds in real time and on a “gross basis.” Transactions are settled immediately after they are processed without linking it with any other transaction.
The Bank of England has launched in 2017 a renewed RTGS service that would ensure payment infrastructures have access to central bank money. At the same time, the bank announced that it had the intention to work with a payment system that would be compatible with Blockchain technology.
In a statement, the bank explains:
“Although 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.”
The Bank will also be cooperating with other companies like Baton Systems, Clearmatics Technologies, R3, and Token. All of them are developing payment solutions that use innovative technologies. These enterprises will examine the DLT payment system in order to interact with the RTGS service. Additionally, they will try to find ways in which the service could expand its functionalities.
Cryptocurrencies Could Keep Expanding
UK City Minister, John Glen, explained that the cryptocurrency market is not a threat for the economy. The UK is analysing the possibility to regulate the cryptocurrency market, but it is always important to leave some space for the industry to keep growing.
Mr Glen said that cryptocurrencies need a proportionate level of regulations that would give certainty to the market and that would allow innovation to spread.
“The issue is, how do we regulate or not, how do we enable or not, based on the blend of opportunities and risks that may exist in this new technology. Regulation could be an enabler of a state, flourishing cryptocurrency exchange in the City of London.”
Similar comments have been given by Mark Carney, Bank of England governor. He claimed that cryptocurrencies are too small and limited to threaten the financial system as we know it today.
The G-20 summit has also shown little interest to create strong regulations around Bitcoin, cryptocurrencies and blockchain technology. Banks have an important potential to develop if they embrace cryptocurrencies and blockchain technology.
Join the conversation over at Telegram (https://t.me/coinstaker)
- Cointipping and Why It’s on Its Way Out - Nov 7, 2019
- Bithoven Exchange Announces New Margin Trading Services For Users After Several Requests - Jul 11, 2019
- Binance Exchange Launches a New Fiat Crypto Exchange Called Binance Jersey - Jan 17, 2019
- VISA Acquires Ripple’s Partner Earthport After Closing a £198 Million Deal - Dec 29, 2018
- Report Says Cryptos Could Soon be Legalized in India - Dec 28, 2018
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.
You have Successfully Subscribed!
Tags:Bank of Englandbank of england blockchainbank of england blockchain technologybank of england crypto newsbank of england cryptocurrenciesBlockchainblockchain technology newsJohn GlenLondonMark Carney