The UK Department of Labor and Pensions (DWP) has recognized blockchain and distributed ledger technology as technologies that can change the traditional payment industry.
According to Richard Laycock, who holds the position of Deputy Director for Digital Payments and Banking Systems at DWP, the agency is looking for ways to update its payment infrastructure.
In order to make the payment system “efficient, modern, fast, scalable, flexible and innovative,” the agency is exploring the possibilities of blockchain and distributed registry technology.
“We are seeing the first implementations of blockchain-based payment systems, such as Santander’s One Pay FX. Blockchain allows you to reduce the time, cost and number of errors associated with the execution of transactions, while the data is stored in a secure and unchanged registry, ”said Laycock.
The official also noted that blockchain-based payment systems will create new business models and products.
Recently, one of Germany’s largest banks, Commerzbank, announced the possibility of creating blockchain payment solutions that could function without the direct involvement of a person.