UK’s Welfare Dept. to Use DLT Payments
August 13, 2019 10:53 pm
To bring an update in the payment system, the U.K.’s Pensions and Welfare Department has planned to adopt Distributed Ledger Technology (DLT) for the processing of their payments. Recently, the authority published a blog post regarding the ideas that are going to be implemented.
Richard Laycock, the deputy director at the DWP’s Digital Delivery Shared Platforms stated that implementation is planned across the DWP payments system to make sure that 20 million users will receive their payments on time.
“As we move our Payment Services forward they need to be efficient, modern, fast, scalable, flexible, innovative and available 24/7. We are starting to see the first full production [DLT] implementations, such as Santander’s One Pay FX. The benefits include reducing time, cost and failure rate associated with making transactions whilst data is stored on a secure immutable ledger.”
The department also aims to renovate its payment structure by introducing the huge set of changes to the way UK payment schemes process payments in years. The plan will be under action from 2021 and the authority will recommend a common payment message standard and combine its existing procedures. New features such as a request to pay and confirm a payee will also be added in the upcoming system.
Open banking is the use of open APIs where it can allow third-party developers to build apps and services around a banking firm. It will also lead to a way to improve aspects of the DWP’s payment services.
The director added:
“I’m keen for us to consider how we can harness the payment innovations coming out of these trends and how we can influence the New Payment Architecture to help shape the future of payments across government.“
In October 2018, the UK’s government announced that it will be updating the crypto tax guidance in 2019. The announcement included that the HM Treasury, Financial Conduct Authority and the Bank of England will support the development of DLT and cryptocurrency-related activities in the UK.