Hauser remarked that financial technology more broadly would shape the way the central bank develops new systems, going on to highlight distributed ledgers in particular. Yet he struck a conservative tone as to how quickly adoption would play out over the years to come.
His comments come after the Bank of England released a consultation paper on the development of its next-generation settlement service and the role in which the technology might play. The Bank of England has spent months investigating the prospects of a central bank-issued digital currency, and recently formed a fintech accelerator aimed at supporting that and similar initiatives.
Hauser told attendees:
"But doing neither is a risky approach," he added.
"There is no likelihood of such an extreme revolution occurring any time soon: much more work is needed across a whole range of issues, including: speed and scaleability; confidentiality protections; developing common protocols; integrating cash and securities movements; and establishing regulatory and legal norms.”
More likely, he went on to say, are "less ambitious but still potentially transformational" uses in certain areas, particularly in cases where market infrastructure could use improvement.
Bank of EnglandCentral Bank
Hauser also noted that financial institutions looking to work with the technology need to decide whether to pursue it alone or in group fashions, a reference to efforts such as the R3 distributed ledger consortium.
Andrew Hauser, the central bank’s executive director for banking, payments and financial resilience, made the remarks during a speech on the history of how the Bank of England developed its settlement systems over the past 20 years. His speech took place at the CREST Twentieth Anniversary Conference on 20th September, an event commemorating the launch of the UK-based securities depository.
The Bank of England has been one of the more aggressive central banks to investigate blockchain and distributed ledger technology, but at least one of its officials doesn’t believe widespread adoption will happen anytime soon.
Image via Shutterstock
DAO.Casino Automates Trust in Online Gambling with Blockchain Technology
The increasing number of online gambling platforms has made it hard for people to differentiate between the ones that are genuine and those that arenât. However, there is a solution that makes
131 Countries: BitPay Goes International With Bitcoin Prepaid Visa Card
BitPay is expanding its prepaid bitcoin card offerings to more than 100 new countries.
Unveiled today by BitPay chief commercial officer Sonny Singh at Consensus 2017, the Visa-branded offering ena
Consensus 2017: 'The Future Is Here' For Blockchain's Cross-Border Impact
The use of blockchain to conduct business across international lines has long been seen as a major application for the tech – but where it offers the most benefits is still open to debate.
Consensus 2017: Enterprise Ethereum Alliance Puts Blockchain Privacy Into Focus
Privacy and confidentiality are big-ticket priorities for the Enterprise Ethereum Alliance, ethereum-focused consortium launched in February.
The group – which last night announced the addition of
Bitcoin jumps $200 in single day and has nearly doubled in May on surging global demand
Bitcoin added more than $200 Monday at one point amid a major New York conference on digital currencies, following a surge in weekend interest from Asian investors. The cryptocurrency briefly
Exchanges Are Weak Point of Cryptoworld, NVO Will Change It
Exchanges are the achilles heel of the cryptocurrency world. Unlike a stock market, where securities are held by a custodian bank and your cash would be in your bank account, in many cryptocurrency
Enterprise Ethereum Alliance Announces Technical Board
The Enterprise Ethereum Alliance, an organization comprised of the some of the most prominent names in blockchain, recently announced its inaugural Technical Steering Board. Focused on building out Et
Bitcoin Price Blitzes Beyond $2,200; USD Markets Reign
The rampaging run continues as bitcoin price soars above $2,220 to new uncharted heights led by trading in US markets.
“Bitcoin Price Could Leap over $2000 in 2017” read a CCN headline citing Danis