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.
Jon Cunliffe

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.” 

The Bank of England Says That It Is Undesirable To Deploy Blockchain In All Markets 3

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

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Missed the AAVE Bullish Ride? This New Presale Can Turn Your Thousands into Millions

While Aave finds itself in uncertain territory, a fresh face in the crypto scene, Qubetics…

5 hours ago

Dogecoin Price Forecast: Analysts Push For $0.2288 DOGE While This Ethereum Altcoin Eyes 8,000% Gains In The Next 16 Days

Analysts push for a Dogecoin price surge to its $0.2288 yearly high while ETFSwap (ETFS)…

5 hours ago

Below $1 Swift Altcoin Competitor Could Overshadow XRP Price Potential Election Rally 

Discover the promising altcoin under $1 that may outperform XRP amid election volatility and market…

5 hours ago

Polkadot and SP Negócios Collaborate to Enhance Crypto Economy Development

Campinas, Brazil, 5th November 2024, Chainwire

6 hours ago

Terra Shuttle Bridge Has Now Been Disabled

Terra Shuttle Bridge has now been closed, and all remaining LUNC and USTC tokens have…

7 hours ago

FLOKI Announces Dubai Takeover with WAFI Mall Campaign

Miami, Florida, 5th November 2024, Chainwire

8 hours ago

This website uses cookies.