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Some things are certain. ‘Death and taxes’, said Benjamin Franklin in 1789. And he might have added, ‘central banks’.
Aloof, inaccessible, powerful but secure. Playing a crucial role in payments as the father of policy. The enabler of settlement. And the maintainer of financial stability for the people.
But maybe it is time for the revered central banks to move with the times. The UK’s Bank of England agrees.
Its One Bank Research initiative is another example of how UK plc is leading the world, preparing the UK financial system for a world where paytech innovation drives power to the people and away from the big banks.
You’ll be pleased to discover that your Payments Association is actively involved. Next week the Chairman of the Payments Association and CEO of APS, Rich Wagner and Andrea Dunlop, CEO of Acquiring and Card solutions at Paysafe Group and leader of the Payments Association’s Project Rome are meeting the Bank of England in Threadneedle Street. We will talk about access to financial systems for non-credit institutions. Later, Rich and I are joined by David Hunter, Chairman of W2 Global and leader of the Payments Association’s Project Catalyst. We will talk about new business models and how paytech innovation will influence the role of the central bank.
The Bank of England is asking four questions. First, what should the Bank’s policy objectives be in the delivery of sterling settlement in central bank money? Second, what functions should the UK High Value Payments System have? Third, who should be able to access it, and how? And, fourth, what should the role of the Bank of England be in the delivery of that service?
These are fundamental questions that have never been asked before. It takes courage to ask, ‘What are we here for?’ and ‘How can we best serve the people?’
This work, along with Andrew Bailey’s appointment as the CEO of the FCA, shows there is a sea-change taking place. I am proud that our community of progressive, innovative and collaborative paytech companies is helping to define this change.
We can’t affect death or taxes. But central banks? With the community behind us, anything’s possible.
The Payments Association
If you want to get involved with Payments Association projects, please contact Carina.