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The Bank Of England RTGS System, Accenture & Ripple


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I am not sure if this has been posted in another thread, I could not find it. (apologies mods if I am repeating information!)

The Bank of England (BOE) is developing a new real time gross settlement system (RTGS) which is due to go live in 2022.

They have officially selected Accenture as their 'Technology Delivery Partner':

https://www.bankofengland.co.uk/news/2020/july/boe-appoints-accenture-as-the-technology-delivery-partner-for-the-rtgs-service-renewal-programme

Some of you may also know that Accenture use Ripple technology:

https://www.accenture.com/_acnmedia/PDF-23/Accenture-Banking-Real-time-Cross-Border-Payments.pdf

This may be the case that Accenture are paying Ripple (Tier 2 supplier) to use their technology but they are developing the solution for the BOE (Tier 1 supplier).

Obviously this is early days and they have just announced that Accenture will develop the system for them - with very little detail. They may not use Ripple tech at all for this solution!

What do you guys and gals think?

 

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Accenture was also chosen to build a (DLT) system for the swedish central bank. It involves a CBDC (Central Bank Digital Currency) called the E-Krona.

I am not sure if the UK RTGS system is similar and involves any CBDC but here is an explanantion of the "swedish" Accenture system. Probably some parts should be reused from the "swedish" system but it could off course be a totally rebuilt system? According to this document the "swedish" Accenture system is using R3’s Corda DLT platform:

https://www.riksbank.se/en-gb/payments--cash/e-krona/technical-solution-for-the-e-krona-pilot/

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Posted (edited)
6 minutes ago, takida said:

Accenture was also chosen to build a (DLT) system for the swedish central bank. It involves a CBDC (Central Bank Digital Currency) called the E-Krona.

I am not sure if the UK RTGS system is similar and involves any CBDC but here is an explanantion of the "swedish" Accenture system. Probably some parts should be reused from the "swedish" system but it could off course be a totally rebuilt system? According to this document the "swedish" Accenture system is using R3’s Corda DLT platform:

https://www.riksbank.se/en-gb/payments--cash/e-krona/technical-solution-for-the-e-krona-pilot/

This is indeed interesting times. I have seen no mention of an E-Sterling (but who knows). The BOE information on their RTGS also mentions possible integration of DLT to cross border payments (they did a Proof of Concept on 'Synchronisation' in 2018 with Ripple.)

Given that R3 can use XRP as it settlement asset, it would be interesting if the Swedish Central Bank integrate for cross border payments too.

Edited by zerpener
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22 minutes ago, zerpener said:

This is indeed interesting times. I have seen no mention of an E-Sterling (but who knows). The BOE information on their RTGS also mentions possible integration of DLT to cross border payments (they did a Proof of Concept on 'Synchronisation' in 2018 with Ripple.)

Given that R3 can use XRP as it settlement asset, it would be interesting if the Swedish Central Bank integrate for cross border payments too.

Imagine for a moment you're a central bank and Accenture is your tech delivery partner for domestic payments. Wouldn't it make perfect sense to ALSO have Accenture as your tech delivery partner for cross-border payments?

Ps. I read somewhere that Bank of Canada also works with Accenture.

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Digitalisation of money is good for Ripple/Ripplenet/XRP.  Sometimes the benefit will be through direct involvement, other times the benefit will be through contiguous involvement in reforming the financial environment and developing the IoV.  

Edited by Julian_Williams
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Accenture has over 4000 clients (as in paying clients, not people they are paying to say they are partners).

Many of those are blockchain related.

BoE, like so many firms signing a contract with Accenture means nothing for Ripple or XRP. The BoE did a pilot with Ripple, it went nowhere and they no longer have a commercial relatoinship

https://www.accenture.com/_acnmedia/pdf-16/accenture-at-a-glance-infographic-2016.pdf

 

 

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@LetHerRip where is the sense to show a bank who isnt interested in the ripple technology?

There is a positive momentum now, and there are enough fi's who are interested in ripple's technology and already using it. 

A good time to explore the possibilities which are emerging at the moment. 

There Were always people who didn't believe and hated against ripple. 

Where is the sense behind, when someone is always pointing to the negative perspective? 

Actually there is happening a lot with ripple and the technology, so let us look which opportunities are emerging at the moment and where we can be a part of it.

if someone doesn't believe the story, Noone forces she / him to invest or believe in ripple or their approach. 

I am always looking for constructive / forward looking perspectives. 

 

Zerpener thank you for the info. 

 

Edited by lumpilumpe
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2 hours ago, lumpilumpe said:

@LetHerRip where is the sense to show a bank who isnt interested in the ripple technology?

There is a positive momentum now, and there are enough fi's who are interested in ripple's technology and already using it. 

A good time to explore the possibilities which are emerging at the moment. 

There Were always people who didn't believe and hated against ripple. 

Where is the sense behind, when someone is always pointing to the negative perspective? 

Actually there is happening a lot with ripple and the technology, so let us look which opportunities are emerging at the moment and where we can be a part of it.

if someone doesn't believe the story, Noone forces she / him to invest or believe in ripple or their approach. 

I am always looking for constructive / forward looking perspectives. 

 

Zerpener thank you for the info. 

 

I like to look at the full picture, not only one side of the coin. I don't hate Ripple or XRP, I want to know the full story. The fact is more than one partner has said the same thing, they didn't realize any benefits using Ripplenet so they will not use them or have canceled the partnership.

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"Love for Crypto" YouTube channel talked about this connection way back 2017 I believe?

Like so many things around Ripple. Yes, no, maybe so? Also it's hard as **** to know anything because the damn banks and big FI's are such liars. They'll say they're not even into crypto and it's garbage, then two years later you find out they've been secretly gobbling it up and prepping to enter the market while lying to everyone to try to get a competitive advantage.

Edited by gamedev368
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@letherrip And this one bank which Doesnt see the benefit gives you the perspective for the full picture. Even without knowing the reason why there aren't able to see a benefit from, despite of the other bigger banks who see a benefit .

They are happy with Emma and we don't how they tested it and for which problems they tried it(maybe they have a contract with Emma and try to push this, maybe they have a better benefit if Emma will become a big player ) . Why not every bank in the world is using Emma, if this is the better solution? 

There are many of the best proven technology solutions which aren'tused by everyone, not everyone is seeing a benefit.

Cross border payment is very cost and time intensive.this is already known and Emma isn't the solution for this,otherwise we wouldn't have this cross border problematic. We all know the nostro vostro account problematic, what is the approach of Emma to solve it? 

What's about sbi one of the biggest fi...? There are many examples of banks who are using the ripple technology. How do I can get the bigger picture if one bank doesn't see a benefit by using it. There are many other banks who are using it. 

There is undeniable  a big progress going in with the xrpl ledger. 

At the beginning all the haters told there won't be any bank who Will use it, how many are now using it? I really don't get how this one bank can give us a deeper look for the whole picture. 

Isn't it very common that there isn't a technology where 100% are able to see the benefit at the beginning . Is there any coin existing who everyone is seeing a benefit from this coin / technology ?what part of the bigger picture do I see when I show up one of the parties who is contra without knowing the reason? 

To look at the bigger picture I would break it down to objective basics. 

There is a cross border problematic (very cost and time intensive) which the fed and many other central banks are putting on their to do list to solve it. 

Nostro vostro accounts are very capital intensive. 

Emma isn't obviously a solution for this. 

Ripple is trying to offer a solution and we will see if they can put it to Mainstreams. 

Many banks are jumping on board and, despite the early statements of the haters banks are using it more and more. 

There are still enough other banks who doesn't see a benefit and won't using it in the future. 

There are still enough who are already using it. 

The internet wasn't used by every company at the beginning. 

How many companies didn't see a benefit of the technology of the internet at the beginning? 

How could this had given you a view to the whole picture? 

There is a new technology and its always that at the beginning there are only a few participants who see the benefit and this group will grow bigger and bigger until it reaches mainstream and nearly everyone is understanding the benefit. 

Now we all know we are in the early cycle of this technology breakthrough about dlt.

So finding the participants who aren't able to see the benefit isn't giving us a perspective to the whole picture, I guess . 

It will darken the the whole perspective until everyone is using it and Noone can't deny it anymore. 

So that I am one of the last who will see the whole picture if I would use this approach of trying to get the full perspective. 

Edited by lumpilumpe
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I found this an interesting comment in a Forbes article on the Fed now system

 

The RTGS renewal project at the Bank of England announced the main technical partner this week. In subsequent press releases BoE admitted that that dismissal of a DLT based system done two years ago needs a rethink. Hooks into DLT based systems are planned. BoE is also using ISO 20022 as its electronic data interchange standard.

Forbes: FedNow Aimed At Transforming The US Payment System Approved By The Board Of Governors Of The Federal Reserve.
https://www.forbes.com/sites/vipinbharathan/2020/08/07/fednow-aimed-at-transforming-the-us-payment-system-approved-by-the-board-of-governors-of-the-federal-reserve/

 

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4 hours ago, Drew said:

I found this an interesting comment in a Forbes article on the Fed now system

The RTGS renewal project at the Bank of England announced the main technical partner this week. In subsequent press releases BoE admitted that that dismissal of a DLT based system done two years ago needs a rethink. Hooks into DLT based systems are planned. BoE is also using ISO 20022 as its electronic data interchange standard.

Forbes: FedNow Aimed At Transforming The US Payment System Approved By The Board Of Governors Of The Federal Reserve.
https://www.forbes.com/sites/vipinbharathan/2020/08/07/fednow-aimed-at-transforming-the-us-payment-system-approved-by-the-board-of-governors-of-the-federal-reserve/

Quote

 

Liquidity

One of the side-effects of gross settlement is increased liquidity demand, due to the fact some debits may hit the reserve account much before the credits. In fact the liquidity needs of gross settlements systems for banks who sit at the heart of the financial system can be as much as 100 times as needed in a net settlement system.

A liquidity management tool which is a part of FedNow core is meant to support each other using credit provided by banks with reserve accounts. The Fed will also support this with intra-day credit windows.

 

ILP...

Quote

Another feature that is being looked at is an alias system. That is, a way to send money using an email or a phone-number. This would mean a directory managed by the system that translates the alias to an account number in a specific bank. 

Quote

 

ISO 20022

Interoperability is going to be a challenge using this model. Encryption and compression standards for XML are in a bit of ferment. Encryption and compression are very important for implementing a payment system infrastructure that needs to support hundreds of thousands of transactions per second in a secure national and supranational payment system.

 

Quote

The RTGS renewal project at the Bank of England announced the main technical partner this week. In subsequent press releases BoE admitted that that dismissal of a DLT based system done two years ago needs a rethink. Hooks into DLT based systems are planned. BoE is also using ISO 20022 as its electronic data interchange standard.

 

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