The Bank of England (BoE) has recently published a paper delving into the application of Ripple’s Interledger Protocol to facilitate synchronized settlement of payments.
Bank of England Unveils Fresh Study on Ripple’s Possible Applications
This move by the Bank of England demonstrates the growing interest of central banks in exploring the potential of blockchain technology. The paper is titled “Ripple: Exploring the Synchronized Settlement of Payments using the Interledger Protocol.”
According to the BoE, Ripple’s protocol has the potential to significantly impact the cross-border payments industry by enabling synchronized settlement across various ledgers. This protocol could serve as a bridge between different payment networks, linking financial institutions and digital assets seamlessly.
The primary objective behind implementing this protocol is to establish a swift and efficient payment ecosystem. The paper showcases the positive results of integrating Ripple’s protocol with the BoE’s Real-Time Gross Settlement (RTGS) systems. This integration has enabled transactions to occur much faster and more efficiently than traditional payment methods.
Earlier in the year, the Bank of England, in collaboration with the Treasury, launched a public consultation to gauge the potential usage of Central Bank Digital Currency (CBDC), specifically a digital pound, within British society.
CBDCs are rapidly gaining traction across various financial sectors. One notable example is the digital euro, which European Union regulators are actively exploring.
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