In a speech offered earlier today, the Bank of England governor Mark Carney said that distributed ledger technology projects have the potential to “unlock billions of pounds in capital and liquidity.” Before adding that these types of projects could see closer cooperation with the central bank itself soon.
Carney made the comments while appearing at the Lord Mayor’s Banquet for Bankers and Merchants of the city of London. His speech was centered on the new forms of financial products and services. The governor revealed that the BoE was planning to consult on opening access to its balance sheet to new payment providers, which could empower a host of new innovation.
It was at this point that Carney decided to touch on the work being done around the distributed ledger technology;
“In wholesale markets, consortia of broker-dealers are working to develop settlement systems using distributed ledger technology that could overhaul how markets operate. These consortia, such as [Utility Settlement Coin], propose to issue digital tokens that are fully backed by central bank money, allowing instant settlement. This could also plug into ‘tokenised assets’ – conventional securities also represented on blockchain—and smart contracts. This can drive efficiency and resilience in operational processes, and reduce counterparty risks in the system, unlocking billions of pounds in capital and liquidity that can be put to more productive uses.”
Distributed Ledger Technology Is Going Mainstream
Carney also touched on Facebook’s Libra project that was unveiled on Tuesday. He said that he expected the cryptocurrency to abide by the highest standards of compliance and regulation.
Facebook is leading other tech companies in taking the blockchain to the masses. In Libra, the social media giant hopes to offer the world a simple global currency that will empower billions of people.
In the financial world, we have JPMorgan Chase who are testing their own digital coin that will help speed up transactions between its customers.
In the sporting field, we have MidasCaps, an innovative blockchain based project that is combing nutrition with sporting activities to offer health and convenience for its users.
Not to mention the various governments that are seeking to harness the power of the distributed ledger technology to benefit their citizens and streamline running of affairs.
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