The Bank of England will be testing DLT technology to make sure that it is compatible with their new RTGS (Real Time Gross Settlement) system.
The Bank of England has been publicly interested in DLT technology for a while now. There have even been suggestions that it could issue its own crypto one day, but for now, true adoption of blockchain technology is on the backburner.
BoE want their RTGS to interface with DLT
In an announcement made on March 27th, the BoE has outlined plans for a stronger, flexible, and innovative RTGS system that will enable the United Kingdom to keep pace with the rapidly changing payments landscape. However, the renewed system does not represent a move by the bank to adopt blockchain technology, at least not yet.
“…the Bank has concluded that Distributed Ledger Technology (DLT) is not yet sufficiently mature to provide the core for the next generation of RTGS…” – Bank of England
In the BoE’s view, DLT is still in its infancy and not yet mature enough to build the next generation of RTGS on, but the bank is making it a priority to ensure the new service will be able to interface with DLT as and when it is developed in the wider sterling markets.
Bank of England will undertake a PoC to incorporate DLT
To achieve this, the BoE is undertaking proof of concept (POC) to learn if the interactions between their renewed Real Time Payment system and DLT is feasible. The bank will work alongside companies such as Baton Systems, Clearmatics Technologies Ltd, R3, and Token to provide a broader idea of how the bank can improve their services in the sector.
The bank has stated that it will publish the findings of the PoC later this year, at which time they will decide which enhancements will need to be implemented to the system to accommodate new technology and highlight any other steps that can be taken to expand the service further.
Michael is an English and Creative writing graduate of Liverpool John Moore’s University, a former editor of several magazines, and a crypto-currency enthusiast. He is mostly interested in crypto-legislation and the potential of decentralized technology to change the world.