Bank of England in a statement released on Monday reveals the Banks’ plan to implement a new payment system to accommodate blockchain users in the country and also the full acceptance to work with cryptocurrencies in England. The new development of the payment system is a big plus to the growth and legal usage of cryptocurrencies globally.
The New Payment System That Accepts Blockchain
Fintech firms that operate with distributed ledger technology (DLT) will start to reap the benefits of the new payment system that will be introduced. This payment system according to the Bank of England on Monday will implement the blockchain.
The new development surges in an attempt of the bank of England to renew the payment system and also immune their system against cyber attacks and increasing the number of businesses that can use the payment system, which is to include the Fintech firms that operate with distributed ledger technology (DLT).
The payment system, Real-Time Gross Settlement (RTGS) system, control transactions that worths over 500 billion pounds, same value with one-third of Britain’s yearly economic output. The worth shows the importance of the system to the United Kingdom. The government is striving hard to make the country the leading center for fintech and blockchain innovations. With Berlin, Paris and some EU cities already seeking to lure fintech innovation away from London, there is thus a need to make the new payment system accommodating to them.
In advancing the course of the new payment system, the bank of England had earlier introduced “proof of concept” to the fintech firms to validate the new payment system, in March of this year.
According to the Bank of England in a press release on Monday, it reads,
“All participants confirmed that the functionality offered by the renewed RTGS service would enable their systems to connect and to achieve the settlement in central bank money.”
It was further stated that recommendations were made for the new payment system to make it function optimally. The Bank of England will work with the proposals offered as they work towards the new payment system.
This innovation is a big boost to cryptocurrency, and another massive increase is the healthy rivalry between the major European cities to become the leading hub for fintech firms. The competition has a lot of advantages which the new payment system is only a part of, more of such development will lead to a significant boost for the cryptocurrency.