New data from UK banks indicates a new ledger based on blockchain might significantly affect the banking industry of the nation. The idea that $14.5 trillion being sent and received year is astounding.
A new blockchain network called the Regulated Liability Network (RLN) lets you now use tokenized assets and central bank digital currencies (CBDCs). Studies have shown it could be successful. Eleven major banks including HSBC, Mastercard, Citi, and Barclays took part in the poll. Many valued how it might help businesses to create new concepts.
The main trade association representing UK finance, UK Finance, has looked at how the RLN could conduct safety, streamline programmed payments, and lower the costs resulting from rejected transactions.
With this program, recording, sending, and payment acceptance is quick and safe. One can also make benefit from other digital currencies. Main consumers of commercial banks are others.
Blockchain Ledger To Enhance UK Financial System And Regulation
Managing director of payments at UK Finance Jane Mackintosh said, “The RLN could be very good for the sector since it would make payment systems better and give new businesses a common way to connect with big banks.” She underlined that improved cooperation between the government and industry will help the RLN to realize its whole potential.
The distributed ledger technology (DLT) of the RLN complements the new objectives of the Bank of England to uphold financial stability and support innovative ideas in the UK payments sector. The Bank of England’s Discussion Paper underlined these objectives and underlined that the RLN might be very important in enabling the accomplishment of those targets.
Although more has to be done to completely deploy the technology and satisfy new regulatory concerns, UK Finance also claimed that the flexible legal and regulatory framework of the country might assist the RLN.
The RLN’s potential became clear at the same time that the UK government passed new rules that make it clearer what the legal situation is of digital assets like cryptocurrencies, carbon credits, and non-fungible tokens (NFTs).
The measure says that these things should be seen as “things” and “personal property” under UK property rules. As a result of last year’s high-profile digital asset bankruptcy, the government is stepping up its governing efforts.
The Financial Conduct Authority (FCA), which is in charge of crypto activity, has made new rules that crypto companies must follow in order to get listed and have their marketing materials accepted.
The FCA has told markets in the UK that if they break the rules, they could get in a lot of trouble. For these, you could go to jail for two years and have to pay fines that never go away.
Along with the new crypto laws, the RLN brings the UK’s financial system up to date and makes it safer, even though the rules and business are still changing.
