Bank of England to Add CBDC Support to New Payment System

The Bank of England (BoE) is making its new payment Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term infrastructure compatible to support transactions with central bank digital currency (CBDC).

The update by the crypto-centric news website Coindesk followed the central bank’s official announcement on Thursday of rebuilding its Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term infrastructure.

The monetary regulator hired IT consulting company Accenture for the upgrade under a £150 million ($195 million) contract.

The overhaul will be done in the real-time gross settlement (RTGS) infrastructure of the UK banking system that currently handles more than £685 billion ($900 billion) worth of transactions every day.

“This is a key milestone in our ambitious and exciting Programme to renew RTGS,” Victoria Cleland, executive director for banking, payments, and innovation at the Bank of England said in an official statement.

The new settlement infrastructure is expected to roll out in 2022.

Making the infrastructure future-proof

Though the official announcement did not specify anything about the digital currency support, the crypto publication reported on the addition of such support to secure the infrastructure for future changes.

Cleland, however, stressed on the future-proofing of the new infrastructure.

“It will support a resilient financial system that protects the UK’s financial and monetary stability in the years to come,” she added. “The renewed RTGS service will be designed not only to benefit everyone in the country who makes payments, but to keep the UK at the leading edge of payments innovation.”

Like any other major monetary regulator, Bank of England is also actively debating on the issuance of the digital version of the pound sterling. It is also a member of a central bank consortium involving the counterparts from Japan, Canada, and Europe to check the feasibility of launching a digital currency.

Earlier this month, BoE Governor Andrew Bailey confirmed that the central bank is actively considering the prospect for a digital pound. However, it’s former governor warned on the impact of such a digital currency on the existing monetary system before his exit.