Revamped BofE RTGS will be DLT friendly

The Bank of England has said that its renewed real-time gross settlement (RTGS) service will be compatible with systems running on DLT.

The Bank of England had previously concluded that DLT was not yet sufficiently mature to provide the core for the next generation of RTGS. But it nonetheless greenlighted a Proof of Concept (POC) with Baton Systems, Clearmatics Technologies, R3 and Token, in an attempt to keep pace with innovative PayTech ventures.

“All participants confirmed that the functionality offered by the renewed RTGS service would enable their systems to connect and to achieve settlement in central bank money,” the central bank says.

“A number of recommendations were received to ensure optimal access to central bank money. Based on these recommendations the Bank will: consider how different account structures could be used in the renewed RTGS service; Investigate whether the renewed RTGS service could provide and consume acceptable forms of cryptographic proofs; and continue to engage with FinTech firms to keep up to date with innovation in payment technology.”

Further details here.