The Bank of England is Looking into Cryptocurrencies to Reinforce Their Defenses
As a member of the UK Crypto taskforce, the BoE is deeply involved in studying the potential effects of Blockchain technology and cryptocurrencies as a means of upping its security. Reuters, a news agency has looked into how the BoE will be utilizing the technology as well as introducing DLT to its system.
As per Reuters and their released report into the matter, England’s bank is looking to completely restructure the system that supports banking in London within the next two years as a means of fortifying defenses against potential hacks and criminal activity and extend the defensive protocol to other involved firms.
The BoE employs what is known as a Real-Time Gross Settlement operation to oversee and manage transactions that sum up to almost half a Trillion GP annually. Earlier this year, The BoE introduced a PoC, or “proof of concept” with many businesses to gauge what exactly would need to be changed to implement the newly updated RTGS to back companies and businesses utilizing blockchain-technology within their own systems.
With the new-age crypto-blockchain tech, the bank may see an entirely new system of operations although the bank will not begin distributing cryptocurrencies but instead use them to implement solutions for a better approval process of transactions by The BoE.
As the bank has stated, the wide and efficient operational services provided by its latest system upgrade will allow the bank to link their systems and achieve its RTGS with central bank funds and has received several expert suggestions on the matter.
As per Reuters in 2014, the RTGS system suffered a sudden technical issue and resulted in the massive shut down and could have been potentially avoided by introducing blockchain into their systems back then.
The bank’s primary attention is directed at protection. The BoE is adamant about upgrading security protocols and merging with blockchain technology to provide automated security checks and guarantee absolute protection of any bank and the assets it's holding whether cryptocurrencies of fiat money.