A senior central bank official has stated that the priority of the Bank of England is to create a regulatory approach to Fintech as it understands its impact, according to Reuters . Victoria Cleland, the BoE’s Chief Cashier, explained that the risks and advantages of digital currencies and blockchain were being assessed. This announcement by the BoE comes when policymakers in Britain want to know if London will remain the global centre for Fintech or if companies will move to other European countries instead. Cleland said that the BoE was working with firms in the Fintech sector to determine where the boundaries will be. Speaking at a peer-to-peer lending conference, she drew parallels toward fintech as a global industry which would require careful regulation. She stated: It’s very difficult to decide how to regulate something you don’t quite know what it is. Bank of England Aims to Boost Fintech In June, the BoE announced its plans to explore new Fintech by working closely with companies to improve its cyber security and payment systems. Through its Fintech Accelerator program , the BoE has received applications from firms which will aid the bank to harness Fintech innovations. Mark Carney, the governor of the Bank of England said at the time that the adoption of Fintech could enhance financial market participation, which in turn could strengthen monetary policy. He said: Fintech should neither be the wild west nor strangled at birth. The Bank is devoting considerable resources to ensure whatever develops is sustainable, not ephemeral. Creating Its Own Digital Currency In a bid to stay ahead of competition the BoE was examining a digital currency in its attempts to maintain its modernization this year, according to an earlier CCN report. Last month, CCN reported that University College of London researchers had developed […]
