UK Finance Blockchain-Based Payment Trial, Here's The Result!

Financial institutions in the UK use blockchain technology for financial transactions. (Photo; Doc. Singfin)

JAKARTA Blockchain technology is increasingly attracting the attention of financial institutions in various countries. One of them is UK Finance, an institution that represents the financial services industry in the UK. UK Finance recently announced promising experimental results from the Regulated Liability Network (RLN) project. This blockchain-based network is DESIGNED to manage central bank digital currencies (CBDC) and other digital assets more efficiently and safely.

Currently, the UK processes payments worth 14.52 trillion US dollars (around Rp232,320 trillion) per year, so the country needs innovation to increase the efficiency of the process. With such a large volume, conventional payment systems certainly need to be improved. This is why UK Finance sees great potential in blockchain technology to revolutionize the way we transact.

RLN, which has been tested with 11 large banks in the UK, has demonstrated its ability to make programmed payments. This means that payments can be regulated more flexibly, for example by adding certain terms and conditions. In addition, RLN is also able to integrate various types of money, ranging from cash to digital currencies, on one platform.

"The results of this experiment are very promising," said Jana Mackintosh, UK Finance Payment Management Director. "RLN has the potential to significantly increase the efficiency and security of payment systems in the UK."

What Is RLN And Why Is It Important?

RLN is a blockchain-based network that uses distributed ledger technology (DLT). DLT allows many parties to record and verify transactions simultaneously, thereby reducing the risk of fraud and error. With RLN, banks in the UK can process transactions faster, cheaper, and safer.

If RLN is fully implemented, the British public will benefit from various aspects of life. For example, bill payments will be easier and faster, cross-border money transfers will be more efficient, and the emergence of innovative new financial services.

Although the potential for RLN is very large, there are still several challenges that must be overcome. One of them is related to regulations. Although the existing legal framework is sufficient, collaboration between regulators, banks, and other related parties is still needed to ensure the implementation of RLN runs smoothly.