The Bank of England’s updated blockchain-compatible payments system will strengthen its defences against cyber-attacks and widen its availability to smaller businesses.
This is the latest update to the BoE’s Real-Time Gross Settlement system, and will launch in 2020. The RTGS system hanndles transactions worth £500 billion – almost a third of the UK’s annual economic output.
A ‘proof of concept’ was announcement in March, and included testing from providers such as Baton Systems and Token, R3 and Clearmatic to see how the system would need to be updated to better support blockchain technology.
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. A number of recommendations were received to ensure optimal access to central bank money.”