The Bank of England has outlined its strategy for advancing the financial infrastructure in the UK, focusing on innovation in money and payments. This includes efforts to modernise the Real-Time Gross Settlement (RTGS) service and explore new forms of digital currency to enhance the efficiency and resilience of the UK's payment systems.
- The Bank of England is upgrading its RTGS service to improve the resilience, efficiency, and accessibility of the UK’s central payment infrastructure. This modernisation aims to support a broader range of payment schemes and new payment technologies, ensuring that the infrastructure can adapt to future innovations and demands.
- The Bank is investigating the potential issuance of a central bank digital currency (CBDC). This digital pound could coexist with cash and bank deposits, providing a secure and accessible form of money in an increasingly digital economy. The CBDC aims to enhance the efficiency of payments and financial stability while supporting innovation in financial services.
- The Bank emphasises the importance of collaboration with other financial institutions, regulators, and stakeholders to foster innovation. It aims to create a regulatory environment that supports innovation while ensuring financial stability and consumer protection. This includes working closely with fintech firms and other industry participants to develop and implement new technologies in a safe and regulated manner.
