Moving forward to become a Fintech center, the UK is completely renewing its banking and trading system in a short time. The Bank of England, which will soon renew its banking and trading system, underlines that it must improve its payment system and support blockchain technology. The main goal of the bank is to reach FinTech companies using distributed ledger technology. Bank of England aims to replace the British banking and trading system by 2020. With the new system to be established, a strong structure against cyber attacks will be established and more institutions will be benefited from bank services.
Purpose To Be The Leading Fintech Center
In March, Bank of England took an important step to deal with the companies that use blockchain. To see what changes would be needed in the proposed revision of the Real-Time Gross Settlement System (RTGS), this technology chose a few companies that were trending for proof of concept. RTGS deals with 500 billion pounds of trading, almost one third of the UK’s annual economic output. The UK government’s desire to see the country as a leading fintech center in payments and blockchain innovations, that constitutes the greatest driving force of change. Bank of England seems to continue to work with Fintech companies to stay up to date on payment technology. One of the biggest reasons why the banking system and RTGS would go into revision was the big downtime experienced by the system in October 2014.
Bank of England wants to make it easier to use this system to lead up competition and innovations.
Written by Gönül Gülce Işık