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Freshfields TQ

Technology quotient - the ability of an individual, team or organization to harness the power of technology

| less than a minute read

Bank of England accelerates Fintech

The Bank of England published a speech last week on Fintech, which included announcing its own accelerator. The accelerator is aimed at partnering with new technology firms, with the focus on innovation for central banking. In return, it will offer firms the chance to demonstrate their solutions for real issues facing the Bank as policymakers.  

The Bank of England is also exploring how it - and others - could use the data that it collects more effectively. The Bank considers that Big Data has the potential to help its policy committees identify trends in systemic risk and the economy. 

Mark Carney also mentioned in the speech that the Bank of England had set up its own distributed ledger, as a proof of concept, and that it is working with other central banks. One wonders if that might include the Bank of Canada (the central bank of Mr Carney's home nation) which announced last week that it was experimenting with an electronic version of the Canadian dollar and how this might be put on the blockchain.

FinTech has the potential to affect monetary policy transmission, the safety and soundness of the firms we supervise, the resilience of the financial system, and the nature of shocks that it might face. It could also have profound implications for the Bank [of England]’s secondary objective, as supervisors, to facilitate effective competition between the firms we regulate. ... To help distinguish DL’s [the Distributed Ledger's] potential from its hype, the Bank has set up our own as a Proof of Concept. We have learned a great deal – about the opportunities and the challenges that need to be met before DL could be used in central banking.


cryptocurrency, automotive, intellectual property

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