25 Jul 2018
A revamped Bank of England payments system should be able to hook up with fintech firms using distributed ledger technology (DLT), the central bank said on Monday in a boost to the development of blockchain in Britain.
The BoE is aiming to revamp the system that underpins British banking and trading in the City of London by 2020 to strengthen defenses against cyber-attacks and widen the number of businesses that can use it.
Its Real-Time Gross Settlement (RTGS) system handles transactions worth around 500 billion pounds – equivalent to almost a third of Britain’s annual economic output.
In March this year, the BoE announced a “proof of concept” with several firms to see what changes would be needed to the proposed revamp of RTGS to support settlement with firms that use blockchain, the technology used to record transactions in cryptocurrencies like bitcoin.
Britain’s government is keen for the United Kingdom to remain a leading center for fintech innovation like payments and blockchain.
– By Huw Jones, Reuters, 23 July 2018.
Link to Reuters.
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