The Bank of England will set up its own fintech hub to find ways to use the kind of technology that has spawned digital currencies such as bitcoin and which could eventually help boost Britain's economy, a top BoE official said on Thursday. "Today I can announce that 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," Deputy Governor Dave Ramsden said.
"It is important that we continue to do this with our doors firmly open," Ramsden, who is deputy governor for markets and banking, said in a speech he was due to deliver to a fintech conference in London.
Today our Deputy Governor for Markets and Banking, Dave Ramsden, spoke about the importance of new technology in the financial services industry and launched our new #Fintech Hub. https://t.co/MEa0HbHWYR #IFTC2018 pic.twitter.com/kC5sHNxzF8— Bank of England (@bankofengland) March 22, 2018
He said the hub would be a central point of contact for the fintech sector and would play a role in a new task force announced earlier on Thursday by Britain's government which is seeking to keep London's edge as a global financial center, even as the country leaves the European Union.
In his speech on Thursday, Ramsden said the rise of fintech could help Britain improve its long-standing problem of weak productivity growth as well as help the BoE improve its internal infrastructure.
"As a member of the Monetary Policy Committee, I need to be open-minded about the way in tech could impact the economy of the UK," he said.
"The defining trend of the last 10 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."
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