The Bank of England (BoE) has released a new paper that explores the use of Ripple’s Interledger Protocol for synchronized settlement of payments.
The new step taken by the Bank of England shows the increasing interest of central banks in blockchain technology. The paper is titled “Ripple: Exploring the Synchronized Settlement of Payments using the Interledger Protocol.”
The BOE believes that Ripple protocol could significantly impact the cross-border payments industry by allowing synchronized settlement across multiple ledgers. The protocol could connect different payment networks, like financial institutions and digital assets.
The main purpose of the protocol is to create a fast and efficient payment ecosystem. The paper shows the results of implementing Ripple’s protocol by the Bank of England with the RTGS systems.
The integration allows transactions to take place in a faster and more efficient way than traditional payment methods.
Earlier this year, the Bank of England and the Treasury launched a public consultation to understand how CBDC, in this case, digital pound, could be used in British society.
CBDC is moving fast among different finance fields. One clear example is the case of the digital euro, which the European Union regulators are exploring.