Mark Carney is about to become a household name. April 29th, 2019 Marck Carney the Governor of the Bank of England put out a powerful statement:
The governor said the central bank was opening up its payments infrastructure to fintech startups, making climate change a key priority, and embracing artificial intelligence to help the Bank adapt to changes in technology and the global economy.
Carney also went on to say:
“The second great wave of globalisation is cresting,” Carney said during a speech at the Innovate Finance Global Summit. “The Fourth Industrial Revolution is just beginning. And a new economy is emerging.”
Ripple was not mentioned by name, but everything that Carney spoke of reeked like what Ripple is doing with Cross-border payments.
Now, we all know that back in 2017 Ripple and the Bank Of England carried out a proof of concept. We also know that Brad Garlinhouse has stated that the Bank of England is a customer of Ripple thanks to Bank XRP.
Brad Garlinghouse: “The Bank of England is a Customer of Ripple, as well as another Central Bank that is unannounced.”
“We have more customers in the pipeline that we are yet to publicly announce .”
— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) February 8, 2018
We carried out a proof of concept with Ripple to explore the synchronised movement of two different currencies across two different real-time gross settlement systems linked using Ripple Connect and the Interledger protocol. We wanted to demonstrate how this kind of synchronisation might lower settlement risk and improve the speed and efficiency of cross-border payments.
The Bank of England successfully integrated the Ripple solution with two simulated RTGS systems, hosted in the cloud, and
demonstrated that we could process a successful cross-border payment across two RTGS systems simultaneously. We also demonstrated that an attempted cross-border payment that failed validation on the receiving side would not be honored.
So what’s next? In our opionion, we will see the Bank Of England go live with Real Tiem Payments this year!