The Bank of England (BoE) revealed on July 23 that it is already beginning to revamp its Real Time Gross Settlement (RTGS) system and that it will be using distributed ledger technology (DLT), according to a Reuters article.
Strengthened Cybersecurity And Scalability
The British financial authority expects the revamped RTGS system to go live in 2020 with strengthened cybersecurity measures and scalability. According to the BoE, the current system handles about 500 billion pounds’ worth of transactions. That is why the financial authority is toiling hard to create the system.
In a statement released yesterday, the BoE said that it received a plethora of recommendations to ensure optimal access to central bank money. One is for it to explore if the revamped system could develop and use “cryptographic proofs” that would prevent data theft or alteration.
The BoE 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 announcement came one month after Mark Carney, BoE’s governor, revealed the authority’s plans to revamp its systems through the use of distributed ledger technology (DLT). in his speech at the annual Mansion House dinner on June 21, he expressed that the RTGS system would have an “ambitious” rebuilding.
Also, he said that the new system will be compatible with new private payment systems. Indeed, his teaser proves accurate enough, as this will be one of the features of the forthcoming RTGS system.
Indeed, the BoE “recognizes that a new economy, a new world, and new demographics demand a new financial system.” (italics mine) And in consonance with the rest of the UK’s revamp of its many governmental sectors, the country could be one of the first to implement it.