Bank of England Working with Ripple on Proof of Concept

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Bank of England Working with Ripple on Proof of Concept

In one of the most recent Ask Me Anything-style interviews, Governor of Bank of England, Mark Carney, answered several questions asked by XRP fans, discussing the cooperation between Bank of England and Ripple Labs.

The discussion was dubbed “Have your say on the future of money,” so the AMA with Governor Carney brought up the future plans of the bank’s cross-border payment system.

In the meanwhile, Ripple’s XRP got the second spot on the list of over 2,000 different digital assets, getting past Ethereum for the second time by its market cap, while Ripple is progressing with the number of partner banks that are now using or testing Ripple’s technology.

Governor Carney Says: “Money is Evolving”

Regarding the way the blockchain technology is set to change the financial industry, Bank of England’s Governor stated that the money is evolving, which is the reason why the way we pay is also changing alongside financial services traditionally used in banking systems.

Carney added that although the money is evolving, he believes that bank notes are to remain a “central form of payment for some time…”.

One of the apparent XRP users, named Steve in the discussion, asked Governor Carney how does Bank of England sees the rising utilization of digital assets, referring to the usage of XRP through RippleNet “as a bridging asset for cross-border payments and transfers.”

The user also asked whether Bank of England is working towards introducing a digital asset that would perform monetary tasks within the banking system.

Carney answered that Bank of England already became partners with RippleNet back in 2017.

The purpose of the cooperation and Ripple partnership with Bank of England, as explained by Governor of the bank, is to work on new ideas on digital assets, cybersecurity, machine learning, distributed ledger technology and more.

Governor Carney emphasized the progress that the bank is making with Ripple on the matter of Proof of Concept, believing that this is something that could change the concept of cross-border payments for better.

Proof of Concept Said to Change Cross-border Payments at Bank of England

Mark Carney also mentioned that the team working on Proof of Concept wanted to see if they are able to execute two transactions in different currencies at the same time but in separate RTGS systems.

The expected result of the test is to see whether the other transaction will fail as it is supposed to in case the first transaction fails to be processed.

This case would prove the system as working and should be used as a principle for cross-currency conversions.

Proof of Concept was mentioned earlier by Executive Director for Banking, Payments and Financial Resilience at Bank of England, Victoria Cleland, stating back in October 2018 that Proof of Concept proved to be functional.

Teamed up with Ripple, Bank of England was testing PoC during the summer when they determined that Proof of Concept is able to say when someone wants to plug into RTGS by using DLT, concluding the tests as successful regarding the mentioned case.    

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