A fintech hub that is aimed to monitor the developments that could help in boosting the weak productivity levels of the United Kingdom is about to be established by the Bank of England (BoE).
In a speech that was delivered today, Dave Ramsden, the deputy governor of the BoE stated: We have set up a new fintech hub that will sit at the heart of the Bank, to consider both how the Bank understands and how it applies fintech, relevant to its mission.”
Ramsden said that the hub would serve as a central point of contact for the fintech sector to be able to engage with the Bank. It will also perform an active role in a new task force that was revealed by the government earlier today.
The United Kingdom is attempting to maintain its grip on the industry as it withdraws from the European Union. As a member of the committee on monetary policy, Ramsden said that he must continue to be open-minded regarding the way that fintech could affect the economy of Britain.
He stated: “The defining trend of the last ten years has been the weakness of productivity. Given the size of the financial sector in the UK, I can see fintech driving competition and a pick-up in productivity in the medium term.”
Ramsden added that he would continue to be open-minded regarding the risks and opportunities that are associated with cryptocurrencies and the blockchain technology.
He said: “Adapting these [blockchain] technologies for the demands of the financial system poses significant challenges.”
Ramsden continued: “But the distributed ledger and cryptographic technologies used by crypto-assets have the future potential to deliver benefits both to the financial system and to the economy it serves, including increasing efficiency and resilience and contributing to a more distributed and diverse payments system.”
The speech of Ramsden followed the announcement of a new fintech strategy for the United Kingdom that was by Chancellor Philip Hammond today.