Bank of England Taps Accenture to Update Real-Time Gross Settlement Service to Support CBDCs

The Bank of England (BoE) has appointed an Irish tech consultancy giant, Accenture, to assist in the renewal program for its Real-Time Gross Settlement Service (RTGS).

According to the announcement on July 30, the contract awarding follows a public procurement process that began back in February 2019. BoE has since noted that the renewal of its RTGS is set to add value to the U.K payment system in several ways. The announcement reads:

“…the renewed RTGS service is to increase resilience and access, offer wider interoperability, improve user functionality and strengthen the end-to-end risk management of the UK high-value payment system.”

The UK’s RTGS plays an essential role in the country’s financial ecosystem, settling an average of £685billlion every day. Executive Director for Banking, Payments, and Innovation, Victoria Cleland, noted that this milestone would play a significant role in shaping the future of UK’s payment network:

“The Renewal Program is a key priority not just for the Bank but also for the wider UK payments industry.  It will support a resilient financial system that protects the UK’s financial and monetary stability in the years to come.”

CBDC’s Also in Consideration

Reporting the news first, Coindesk, revealed that the BoE renewal RTGS might be compatible with a digital pound amongst other CBDC’s. The new design will feature tools for ‘bolt-on’ functions, should the BoE decide to integrate CBDC’s. Cleland further echoed that it will keep the U.K. on track when it comes to FinTech innovation:

“The renewed RTGS service will be designed not only to benefit everyone in the country which makes payments but to keep the UK at the leading edge of payments innovation.”

This development coincides with a new spark in CBDC interest by governments and regulators. China is currently ahead of the curve, having launched its digital yuan pilot back in April. Nations like France and Italy have shown willingness to participate in a digital Euro as soon as one is formalized.

Read Original/a>
Author: Edwin Munyui

Nekti Upgrades Its Digital ID Service To Assist Crypto Ventures Adhere To FATF’s New Rules

On Monday, Netki announced it has completed upgrading its digital ID services in order to assist crypto-based companies to adhere to the stringent global rules and guidelines set to combat money laundering.

According to CoinDesk, the TransactID has been upgraded to include two fresh features like the capability to break down certificates of an individual’s identity into lesser pieces of personally identifiable information (PII). The other feature is the capability for both senders as well as receivers of funds to ask PII from one another.

Netki CEO, Justin Newton, explained that prior to the upgrade there was a single big atomic transaction where information was shared on each other on both ends. He added that with the new features, the new protocol will be much more of a conversation and each side will be able to ask and share personal pieces of identification with one other.

The new features comes after Financial Action Task Force (FATF) released new guidelines in June that require virtual asset service providers (VASPs) that comprise of crypto exchanges, to share information on their clients with each other during the transfer of money in order to make sure the law enforcement agencies can have an information trail.

Although FATF guidelines are not binding, about 37 members of the outfit are anticipating to enforce them through legislation in the next 12 months.

Even before the implementation of the FATF’s standards, some countries are already taking measures to crack down on fraud and financing of illegal activities using cryptos. For instance, U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) recently said that the travel rule now applies to crypto exchanges like other financial institutions.

While TransactID was developed for use in the US, the recommendations by the FATF to apply the travel rule even on cryptocurrencies, means that Netki had to go back to the drawing board and come up with a product which can be customized to fit to a country’s interpretation of the standards.

Read Original/a>
Author: Joseph Kibe