The UK’s Central Bank (BoE) said that the updated payment system will be compatible with the products developed on the basis of the blockchain. Messages about it appeared in the media on Monday, July 23.
The statement refers to a System of gross settlement in real time (RTGS) of the Central Bank of England, which annually processes transactions totalling about £500 billion, or $655,5 billion system Upgrade is scheduled for completion in 2020. As representatives of the Bank, the new RTGS will be better protected from cyber attacks and more affordable for small businesses.
The intention to develop a system with the support of blockchain technology the Bank of England told in 2017. In March this year, the organization conducted a proof-of-concept, in which found out how RTGS can be connected to distributed networks.
For peer review were involved in financial-technology companies that use the blockchain: Baton Systems, Token, R3 and Clearmatics. Experts had to analyze whether the updated cloud-based payment system to work effectively with services, built on the technology of distributed registry and how it can expand its functionality. As a result of the tests, all companies reported that their blockchain platform will not experience any compatibility issues, and the functionality of the system will allow to make payments with Central Bank money.
In addition, the company has prepared a number of recommendations for the Central Bank. In one of them the system developers are invited to study in detail all possible options for the use of cryptographic keys to protect user data.
Despite the fact that the Bank of England abandoned plans to release its own cryptocurrency in may, he published a paper in which it was given a description of the three financial models of digital currencies issued by Central banks (CBDC). BoE explained that their analysis will help researchers, because it describes in detail how the CBDC will work in practice.
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