UK to explore Blockchain tech for offering traditional services

Countries are looking at ways to attract crypto companies in order to become the global crypto hub. For that, the United Kingdom (UK) is looking at deploying blockchain tech to traditional financial markets, such as the settlement of bonds, trading, and stocks.

Director-General for Financial Services, Gwyneth Nurse, stated that the integration of blockchain is a way to refine and bolster the UK’s financial markets. She talked about this at the annual IDX Derivatives conference in London yesterday.

She also stated:

“Britain will launch a financial market infrastructure “sandbox” next year for testing DLT projects under the control of regulators. The government may also want to test how trading and settlement might be brought together. A sandbox will allow to test new regulatory best practices and make permanent changes to ensure market users benefit.”

United Kingdom’s financial market requires three processes for trading stocks, bonds, and other assets: trading, clearing, and settlement.

However, using blockchain tech, the UK government can cut down on these tedious processes, allowing for issuance of financial instruments in a matter of hours. Moreover, Nurse also stated that the United Kingdom is planning to build a “sandbox” for testing blockchain infrastructure. These test environments include real customers for optimal testing.

Besides all this, the United Kingdom parliament will see the introduction of a new financial services bill. This bill will include the ‘sandbox’ and regulations for stablecoins. Moreover, Industry experts have stated that a proper digital currency is needed for leveraging the advantages of blockchain technology.

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