In a move that could set the stage for the first major step toward creating a more secure and decentralized financial system, the Federal Reserve will consider a blockchain-based platform for the U.K.’s financial system as early as this fall.
The decision comes after regulators in several other countries, including the U, Europe and the U-S., have said they would consider such a system for the banking industry.
If approved by the Fed, the blockchain platform would be a platform that could be run by a group of independent stakeholders in a way that could speed up payments and speed up the creation and settlement of the nation’s financial records, according to the New York Fed’s statement.
The announcement comes in response to a series of questions raised by the public, such as when regulators in the U.-S.
and Europe will get the green light to adopt such a platform and how the technology could be integrated into existing financial systems.
“We have been exploring how we can support the growth of financial technology with a new kind of financial system that is faster, cheaper and more reliable,” New York Federal Reserve Board Chair William Dudley said in a statement.
“The blockchain can offer a more transparent and transparent set of standards that could make financial innovation possible for a large number of stakeholders.”
The announcement follows the release of the Federal Open Market Committee’s guidance on financial technologies, which will likely be released at the end of this month.
In the document, the committee recommends that the Federal reserve’s policy to consider blockchain technologies be expanded to include a set of regulatory guidelines.
While the Federal open market is a body tasked with ensuring that the price and quality of financial markets remain stable and sound, it is not a legal body and the guidelines don’t necessarily mandate what technology should be included in a new platform.
But the Federal bank of England, the country’s biggest financial institution, said in October that it would consider introducing blockchain-backed payments to its network.
The bank has already been working with several companies to explore blockchain solutions, including BitPay, which is the largest bitcoin payments processor in the world.
“In the coming months, we will look at what the regulatory environment is and we will make sure we are fully prepared for that environment,” BitPay chief executive Sean Rad told Reuters.
“That will be a matter for regulators to sort out.”
In a statement, BitPay said the technology’s potential could enable the financial system to become more efficient and transparent.
“Today, there are some big challenges in using blockchain technology to scale, manage and secure our financial services, but we believe this could help to bring about a faster, more transparent, and more secure system, which could in turn enable us to become a more efficient financial service provider,” Bitpay said.
“By creating a trusted, transparent, frictionless and trusted environment, we can ensure that our customers have confidence in the accuracy and security of their financial data.”
The Federal Reserve also plans to begin a study of blockchain applications in the next six months.
“It is a timely and critical time for the Federal financial markets, and particularly the Federal banking system, to consider a more innovative, blockchain-like, and blockchain-friendly financial system,” said Paul Gress, chief economist at the Federal Deposit Insurance Corp. “There are many areas where blockchain can contribute to improving the financial sector and providing more confidence in financial markets.
This is just one of them.”