Bank of England makes blockchain programmability a key focus

The Bank of England has taken an important step towards blockchain integration. According to update According to information shared by Quant Network CEO Gilbert Verdian, the bank invited Quant to test run the idea within a sandbox run by the financial institution. The goal is to test the idea of ​​financial automation with atomic, multi-bank cash movements.

Quant proposes multi-bank financial automation model

In particular, the purpose of this ‘test’ is to enable the Bank of England to perform a synchronization in preparation for a future upgrade to the UK’s Real Time Settlement System (RTGS). The Bank’s Synchronization Lab serves as a simulation environment without real money, production systems, or policy decisions.

But the move shows banks are preparing for possible future consolidation. The Bank of England is considering this because the current structure is fragmented across systems and atomic payments reduce the associated risks.

Vardian said Quant Network is proposing to test ways for large companies that use multiple banks to move funds between those banks at the same time.

The current structural arrangement is that companies send payments to one entity, wait for them, send them to another entity, and wait for them to complete. One or two of every payment may fail. Verdian calls this “partial settlement” risk.

But Vardian said Quant aims to eliminate this partial settlement risk across multiple banks at once. That is, all transfers start as a single action and are resolved all together or not at all.

To achieve this, Quant says it leverages an automated platform to simulate the cash reserves of multiple banks and commit all transfers at the same time. Once the closing is complete, Quant will update your financial records.

The objective is to reduce operational risk, liquidity buffers, and automate financial workflows. It would also eliminate coordination complexity, which is a real problem in corporate banking systems like the Bank of England.

Central banks move from CBDC to infrastructure modernization

As well as other protocols such as XRP Ledgerthis development highlights the role of Quant Network in enabling atomic settlement of multi-bank treasury operations. Once implemented, it should ensure faster payments without disrupting existing market infrastructure.

Interestingly, just a year ago at this time Andrew Bailey, the Governor of the Bank of England, was exploring other possibilities. What Bailey saw Create a central bank digital currency (CBDC) and stablecoins.

The financial institution appears to be actively embracing digital assets and infrastructure to better serve its users.