Thursday, April 24, 2025
9.9 C
London
HomeBankingBank of England launches discussion paper on “ambitious agenda” for UK’s payments...

Bank of England launches discussion paper on “ambitious agenda” for UK’s payments landscape

Date:

Fiserv to Acquire Brazilian Fintech Money Money

Strategic Move to Expand Digital Finance Presence in BrazilHighlights:...

TD Bank Opens New AI Office in New York: A Step Forward in Financial Innovation

Exploring TD's Commitment to Integrating AI Technologies into Banking...

BIS Project Revolutionizes Promissory Notes by Utilizing Blockchain Technology

Exploring the Innovative Intersection of Financial Instruments and Distributed...

Bank of England Discussion Paper on Payments Innovation

Key Points:

  1. Objective:
    • The Bank of England (BoE) has released a discussion paper to seek feedback on balancing payment innovation with monetary and financial stability.
  2. Key Focus Areas:
    • Financial Stability Risks:
      • Concerns about the separation of financial markets from central bank money.
      • The rise of private digital money forms like tokenized deposits and stablecoins.
    • Central Bank Money and Technology Interaction:
      • Potential risks if central bank money cannot interact with new technologies, leading to a shift towards private settlement assets.
    • Wholesale Settlement Risks:
      • Discussion on the risk appetite for wholesale settlement in central bank money.
  3. Real-Time Gross Settlement (RTGS) Service Roadmap:
    • Plans to introduce new RTGS functionalities, including:
      • Extended settlement hours.
      • A synchronization interface for connecting to external ledgers and programmable platforms.
      • Asset settlement in central bank money.
    • Exploration of wholesale central bank digital currency (wCBDC) technologies, though more work is needed to define their roles.
  4. Public Feedback Areas:
    • Scalability: Programmable platforms in wholesale financial markets.
    • Innovation Pace: In private money for retail payments.
    • Risks and Benefits: Use of tokenized deposits and stablecoins for wholesale transactions.
  5. Feedback Deadline:
    • The public is invited to submit feedback by 31 October 2024.

Related stories

spot_img

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories