New Bank of England payments system to incorporate blockchain
The Bank of England has said its revamp of the payments system that underpins British banking will include blockchain technology to help broaden the number of businesses that can use it.
The central bank aims to have its Real-Time Gross Settlement (RTGS) system, which handles annual transactions worth nearly £500bn, fully upgraded by 2020 with added security to prevent cyber attacks.
Proof of concept
Following a proof of concept (POC) investigation in partnership with Baton Systems, Clearmatics Technologies, R3 and Token, the Bank believes the renewed RTGS service would enable its systems to connect and to achieve settlement in central bank money.
Some limitations of the system were identified, however. Some of the participants in the POC asked if the service could have a more flexible approach to account structure to cater for new settlement models being developed.
Participants highlighted the importance of continued engagement with financial technology firms, and noted the need for the BoE to keep pace with evolutions in technology in payment systems.