Bank of England to revamp payment system to serve blockchain users

Tuesday 24 July 2018 11:44 CET | News

The Bank of England has agreed that it needs a revamped payments system capable of hooking up with fintechs using distributed ledger technology (DLT), according to Reuters.

The BoE is aiming to revamp the system that underpins British banking and trading in the City of London by 2020 to strengthen defences against cyber-attacks and widen the number of businesses that can use it.

Currently, its Real-Time Gross Settlement (RTGS) system handles transactions worth around GBP 500 billion - equivalent to almost a third of Britain’s annual economic output. In March 2018, the BoE announced a “proof of concept” with several companies to see what changes would be needed to the proposed revamp of RTGS to support settlement via blockchain tech.

One recommendation will be to investigate if the revamped RTGS system could provide and use “cryptographic proofs” that stop data being stolen or altered. The BoE will continue to engage with fintech firms to keep up to date with innovation in payment technology.

Britain’s government is keen for the United Kingdom to remain a leading center for fintech innovation like payments and blockchain. Moreover, according to Reuters, Berlin, Paris and other EU cities are seeking to lure fintechs from Britain, worried about access to the bloc’s single market after Brexit in 2019.

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Keywords: Bank of England, BOE, blockchain, payments , settlement, RTGS, fintech, UK
Countries: World

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