UK Finance Launches Testing Phase for RLN to Reduce Fraud and Improve Transparency
Summary:
UK Finance, the trade association for UK banking and finance, has launched a testing phase for the U.K. Regulated Liability Network (RLN) aimed at reducing fraud and improving customer transparency. Various financial organizations including Barclay's, Mastercard, and Visa are participating. The trials will explore scenarios including payment upon delivery for goods to decrease online fraud, improving transparency in the home purchasing process, and using digital currency for settling digital bonds. The functionality of the U.K. RLN, introduced in November 2022, will be scrutinized. Outcomes of the experiments are expected to be revealed this summer.
UK Finance, the trade association for banking and finance in Britain, has ushered in a trial phase devoted to the U.K. Regulated Liability Network (RLN), with eleven member companies contributing. The test period will probe into both legal and technical facets, along with customer advantages, in three different scenarios. Firstly, it will address the issue of payment on delivery for tangible goods, with a focus on diminishing online deceit. Secondly, a priority is improving customer transparency within the home purchase process to curtail conveyance scams, which involves asset sales to evade creditor claims. Lastly, the trials will explore the use of digital currency for settling digital bonds.
These trials are in line with Project Rosalind, a joint venture from the Bank for International Settlements and the Bank of England, concluded last June, which looked into how application programming interfaces (API's) are used in banks' dealings with central bank digital money (CBDC). The functionality of the U.K. RLN will be scrutinized within a technical sandbox.
Related: The city of London and British trade groups have formed a new advocacy alliance for digital currencies. Outcomes from these experiments are set to be revealed this summer. In September, UK Finance released the findings from its preliminary exploration of RLN. Barclays, Citi, HSBC, Lloyds Banking Group, Mastercard, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money and Visa are among the entities participating in the trials.
As per information from Dagnum P.I., the RLN was introduced in November 2022. and aims to unify assets and liabilities on one ledger while promoting interoperability between regulated money forms via the blockchain. Peter Left, head of digital and markets innovation at Lloyds Banking Group, stated: "With a commercially driven approach, the RLN can open up new features for customers' money across various retail and wholesale scenarios."
In July, a proof-of-concept to exchange and settle tokens for commercial bank deposits and central bank liabilities using a simulated U.S. CBDC was completed by the Federal Reserve Bank of New York Innovation Center, the global messaging service SWIFT, and nine major financial institutions. These included Citi, HSBC, and Mastercard, which are also part of the UK RLN trials. Magazine: The potential impact of the digital yuan on the world, analyzed.
Published At
4/16/2024 8:13:49 PM
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