On June 21 the Governor of the Bank of England Mark Carney announced that the updated payment system will be launched in 2020, so that it can interface with private business and platforms using distributed ledger technology (DLT).
The nature of commerce is changing. Sales are increasingly taking place on-line and over platforms, rather than on the high street. Intangible capital is now more important than physical capital.8 Data is the new oil.
Such a step will help to develop the blockchain industry in the United Kingdom.
The real-time gross settlement system (RTGS) will be updated by 2020 and will receive new degrees of protection against cyberattacks, as well as allow a wide range of companies to work directly without intermediaries. At the moment, payments of £ 500 billion are made through RTGS annually, which is one third of the UK’s total GDP.
In the report a new generation of non-bank payment service providers (PSPs) was also mentioned:
Several non-bank PSPs, focused on retail and corporate services, are applying currently. The electronic money flowing through their systems will become more like its physical relative. Electronic payments are becoming instantaneous by using QR codes or mobile phone numbers. Checkout can be eliminated. The customer, not cash, will reign supreme.
In March, the Bank of England in partnership with blockchain company Chain presented the concept of secure transactions, which describes the possibility of providing users with access to data in a completely secure network. To test the system, the regulator involved several local FINTECH companies.
Noticeable enough that that last year the Bank of England called the blockchain technology too raw to be used in RTGS.
