Bank of England to test blockchain

Despite what the governor of the Bank of England said before about cryptocurrency, the technology which underlies virtually all digital coins has become one of the projects currently developed by this establishment.

This structure is going to be built with the use of the Proof-of-Concept approach. The basic gist of the project is to combine the Real Time Gross Settlement system with the technology of blockchain. Among other partners, the Bank is going to cooperate with the vast R3 alliance. The possibilities of this technology are endless once you get it right, as repeatedly stated by experts familiar with practical problems of blockchain implementation.

Governor of Bank of England Mark Carney has clearly chosen to discourage the use of cryptocurrencies in his public statements. To his credit, he never changed his position in the last 6 months. Jamie Dimon from JPMorgan Chase has first called Bitcoin a fraud and then a few months later told he regretted the statement.

The British Royal Mint, another major financial organization in the United Kingdom, seems to be more daring when it comes to cryptocurrency technologies and instead of using basic principles of distributed ledger is now developing its own token - although it will greatly vary from other usual tokens because it will cost greatly due to direct link with the Mint’s physical assets and will almost certainly not be offered to each and every crypto investor.

Image courtesy of Alamy