The Bank of England Says That It Is Undesirable To Deploy Blockchain In All Markets
On Wednesday, September 28, Deputy Governor of the Bank of England Jon Cunliffe stated that deploying blockchain technology, which is the cornerstone of crypto assets, to enable speedy trading and settlement across all financial markets is not wanted due to the challenges that would arise.
According to Cunliffe, it is critical to ensure that trading and settlement innovations are as solid in the eyes of regulators as the present system is, Reuters reported on September 28.
He went on to say that having cash and securities on hand at the time a deal is executed is required for a quick settlement. It was unknown how blockchain-based platforms and existing technologies would interact. Cunliffe said at a conference held by financial industry body AFME:
“There is simply no time to identify or rectify errors before they are actioned. In short, we may not want wholly instantaneous trading and settlement in all markets.”
Stock and bond transactions are currently paid two business days following the transaction. As a result, banks face hazardous exposures and the likelihood of major market swings in the interim, which must be covered by funds for margin and capital.
As a result, the US has set March 2024 as the target date for reducing this to one working day, and Europe is under pressure to do the same.
Meanwhile, pilot programs are in place to evaluate the use of distributed ledger technology, or blockchain, for speedy trading and transaction settlement, with the objective of lowering costs and risks.
It’s also worth noting that Cunliffe earlier cautioned that the rapid expansion of cryptocurrencies might represent a severe danger to the existing financial system, and the Bank of England likewise rejected using the digital pound as payment in July.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
Author
News
The Bank of England Says That It Is Undesirable To Deploy Blockchain In All Markets
On Wednesday, September 28, Deputy Governor of the Bank of England Jon Cunliffe stated that deploying blockchain technology, which is the cornerstone of crypto assets, to enable speedy trading and settlement across all financial markets is not wanted due to the challenges that would arise.
According to Cunliffe, it is critical to ensure that trading and settlement innovations are as solid in the eyes of regulators as the present system is, Reuters reported on September 28.
He went on to say that having cash and securities on hand at the time a deal is executed is required for a quick settlement. It was unknown how blockchain-based platforms and existing technologies would interact. Cunliffe said at a conference held by financial industry body AFME:
“There is simply no time to identify or rectify errors before they are actioned. In short, we may not want wholly instantaneous trading and settlement in all markets.”
Stock and bond transactions are currently paid two business days following the transaction. As a result, banks face hazardous exposures and the likelihood of major market swings in the interim, which must be covered by funds for margin and capital.
As a result, the US has set March 2024 as the target date for reducing this to one working day, and Europe is under pressure to do the same.
Meanwhile, pilot programs are in place to evaluate the use of distributed ledger technology, or blockchain, for speedy trading and transaction settlement, with the objective of lowering costs and risks.
It’s also worth noting that Cunliffe earlier cautioned that the rapid expansion of cryptocurrencies might represent a severe danger to the existing financial system, and the Bank of England likewise rejected using the digital pound as payment in July.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
Other Posts
Related Posts
Latest
Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns
Bonk’s ICO Was Just the Start: Why BTFD Coin’s Stage 7 Price Rollback Is Your Second Shot at Crypto Glory
Decoding BDAG’s AMA: A Blueprint for Scalable Blockchain and Enhanced Community Ties
Press Release
Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns
Bonk’s ICO Was Just the Start: Why BTFD Coin’s Stage 7 Price Rollback Is Your Second Shot at Crypto Glory
