{"id":112431,"date":"2021-04-19T15:23:41","date_gmt":"2021-04-19T15:23:41","guid":{"rendered":"https:\/\/fin2me.com\/?p=112431"},"modified":"2021-04-19T15:23:41","modified_gmt":"2021-04-19T15:23:41","slug":"bank-of-england-boosts-payments-competition-with-new-account","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/bank-of-england-boosts-payments-competition-with-new-account\/","title":{"rendered":"Bank of England boosts payments competition with new account"},"content":{"rendered":"<p>LONDON (Reuters) &#8211; The Bank of England gave the green light on Monday to a new type of account at the central bank to bolster Britain\u2019s credentials in financial innovation and open up payments to more competition.<\/p><figcaption>FILE PHOTO: A general view shows The Bank of England in the City of London financial district in London, Britain, November 5, 2020. REUTERS\/John Sibley\/File Photo<\/figcaption><p>The BoE said it would offer an \u201comnibus\u201d account to cater for a wider range of anticipated payments systems, such as those based on distributed ledger technology (DLT) or blockchain, the technology which underpins crypto-assets like bitcoin.<\/p>\n<p>\u201cUnder the new model, an operator of a payment system can hold funds in the omnibus account to fund their participants\u2019 balances with central bank money,\u201d the BoE said in a statement.<\/p>\n<p>\u201cThis will allow them to offer innovative payment services, while having the security of central bank money settlement.\u201d<\/p>\n<p>A central bank account means less credit risk as potential defaults from many intermediaries will be stripped out.<\/p>\n<p>Fnality, which is backed by 15 banks, said on Monday it has submitted an application to the BoE to become the operator of an omnibus account for its planned DLT-based payment system.<\/p>\n<p>\u201cThis is huge for the sector,\u201d Fnality CEO Rhomaios Ram said of the BoE announcement, adding it was a sign that authorities were becoming more comfortable with blockchain-type innovation.<\/p>\n<p>\u201cThe big question before was are the authorities even going to allow something like this to happen.\u201d<\/p>\n<p>Money in the omnibus account would be owned by participants on Fnality\u2019s platform, which include Barclays, Credit Suisse, Lloyds, UBS and Santander. They would exchange stocks, bonds, derivatives and other assets directly with each other on a wholesale basis.<\/p>\n<p>The change of ownership in the assets would be recorded on Fnality\u2019s DLT accounting system without the need to go through many intermediaries, thereby saving on time and cost, while the money stayed in the omnibus account.<\/p>\n<p>\u201cThis is uncharted territory for the BoE,\u201d Ram said in response to when he could expect to receive approval for the omnibus account.<\/p>\n<p>Source: <a href=\"https:\/\/www.reuters.com\/article\/us-boe-account\/bank-of-england-boosts-payments-competition-with-new-account-idUSKBN2C61XM\" target=\"_blank\" rel=\"noopener noreferrer\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON (Reuters) &#8211; The Bank of England gave the green light on Monday to a new type of account at the central bank to bolster [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":112430,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of England boosts payments competition with new account - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/bank-of-england-boosts-payments-competition-with-new-account\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of England boosts payments competition with new account - Fin2me\" \/>\n<meta property=\"og:description\" content=\"LONDON (Reuters) &#8211; 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