The Bank of England is exploring the possibility of regulatory control on blockchain transaction

The Bank of England the UK’s Central Bank, creates a proof of concept (PoC) to study the issue of support for privacy in the network on the basis of the distributed registry, while maintaining the ability of the regulators to access the data. The project is implemented in partnership with blockchain startup Chain, developing protocols infrastructure.

On Wednesday, the Bank of England has released a document explaining how to maintain a high level of confidentiality among the participants of a distributed network, and at the same time to facilitate operations with various financial assets. Ideally, the Central Bank wants to create a «system of distributed registry, in which the transactions will be kept confidential, but all the data will be distributed online and available for viewing by regulators».

Apparently representatives of the Central Bank countries are developing PoC to give impetus to the implementation of a distributed registry technology in business processes, while trying to avoid the complete independence of the system and conceal transactions from the authorities.

A few days ago it became known that the Bank of England is testing the technology of the blockchain in the system of internal payments. With this purpose, the Central Bank also created a proof of concept to explore the potential of the blockchain in the system of gross settlement in real time (RTGS).

According to representatives of the Central Bank, the main problem of the technology of the distributed registry is scalability – because of difficulties with her power still afraid to introduce large-scale the blockchain. Despite this, in the Bank of England are sure that there is the possibility of creating an ideal model. While the Central Bank emphasize that the technology is still at an early stage of development.

«We still have to look more closely at the pros and cons of technology, especially in relation to issues of scalability, speed of transaction and security-related risks, which are cryptographic technologies», — noted in the Central Bank.

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