On 21st June the Bank of England governor Mark Carney announced in his speech to rebuild its Real Time Gross Settlement (RTGS) system because it may interface with private business platforms using their ledger technology (DLT) by using distributed ledger technology.
Mark Carney spoke in his speech at Mansion House in London, he added that the bank will conduct an “ambitious rebuild’ of its own RTGS system, generally RTGS is system used to transfer large volumes of funds between banks according to him, the backbone of every payment in the U.K.
Carney said: . “Our new, hard infrastructure will be future-proofed to your imaginations, opening up a range of potential innovations in wholesale markets, and corporate banking and retail services,” as the bank wants to reorganize the existing RTGS so that the private payment platforms that can straight forward the bank’s system.Carney added that-
“The potential returns are large. At present, cross-border payments can cost ten times more than domestic ones. We estimate that in the U.K. alone there is scope to realize annual savings of over £600 million. Most fundamentally, the more seamless are global and domestic payments, the more U.K. households and businesses will benefit from the new global economy.”
The governor remarked that the bank has begun started working with the Bank of Canada, the Monetary Authority of Singapore, and with some private-sector organizations includes initiatives based on DLT to upgrade inter-bank cross-border payments.
The domestic and international financial systems will do advance access as Carney declared about the new system which will fight for money laundering and financing of terrorism,
The RTGS renewal Proof-of-Concept (PoC) was initially proposed in May 2017. Despite it has placed a high priority on ensuring them t the government will do he improvement of RTGS functionality is capable of interfacing with DLT. As,the bank then concluded that DLT was “not yet sufficiently mature to provide the core for the next generation of RTGS.”
In month of April, the Bank of England keeps data shared all around the world network, released how to maintain privacy between participants through a (PoC) paper that will examine how to configure a distributed ledger system and it will set up the regulatory body to see overall transactions.
No party or any other party regulatory would be able to infer details about transactions. The central authority would give grant access permissions to have the power to issue and retire new units of assets through all participants.