Bank of England Welcomes Blockchain Users

25.07.2018

The Bank of England is going through a complete overhaul of its interbank payment system, which should be completed by 2020. The bank’s representatives announced that the network will be opened to fintech companies with blockchain transactions. One of the reasons behind this decision may be connected to Brexit; the UK is doing a lot to attract fintech companies to the country.

The central bank issued a report where its recent PoC with firms operating in the DLT (distributed ledger technology) space was evaluated. The goal was to examine the feasibility of connecting blockchain companies to a new version of the bank’s RTGS - Real-Time Gross Settlement - service. The RTGC manages settlements between financial institutions. The most ambitious aspect of RTGC reform is to open it to private payment systems, including DLT.

The aforementioned PoC featured such DLT startups as Baton Systems, Clearmatics Technologies, R3, and Token. Bank of England officials have said “All participants confirmed that the functionality offered by the renewed RTGS service would enable their systems to connect and to achieve settlement in central bank money”. The statement adds that further tests will be conducted to establish “whether the renewed RTGS service could provide and consume acceptable forms of cryptographic proof.”

Latest news

15.08.2018
Japanese Messaging Giant LINE Launches $10 Million Blockchain Venture Fund LINE, Japan’s largest messaging app, launched “Unblock Ventures,” a $10 million token venture fund focusing on blockchain startups and initial coin offerings (ICOs).
15.08.2018
SEC Hits ICO Scammer with $30,000 Fine and Lifetime Trading Ban The founder of a fraudulent ICO project was issued a $30,000 fine, barred from serving as the director or officer of any publicly traded company, and banned from trading penny stocks for life by the U.S. SEC.
15.08.2018
Venezuela’s Next Step: a Central Bank For Cryptocurrencies The National Constitutional Assembly plans to reform the country’s 1999 Constitution to include a Central Bank for cryptocurrencies.