The Bank of England (BoE) is focusing on artificial intelligence (AI), distributed ledger technology (DLT), and quantum computing as the three key technologies with transformative potential.
The central bank has outlined its plans for embracing new technology in a report that addresses technological innovation within the economy, the interaction of emerging technologies, and its commitment to fostering responsible innovation.
According to the BoE, the UK’s financial services sector plays a crucial role in both adopting these technologies and enabling other sectors to benefit.
“Many firms are already utilizing AI, piloting DLT applications, and exploring the potential of quantum computing,” said Sarah Breeden, Deputy Governor for Financial Stability at the BoE. “In addition to being early adopters, the financial services sector can help other industries implement these technologies. If adopted widely and responsibly, they could enhance the UK’s productivity and overall economic growth.”
Breeden emphasized that the BoE aims to shape rather than hinder innovation, advocating for a policy of “responsible innovation.”
“The magnitude of change brought about by technological advancement will influence all aspects of the Bank of England’s work, from setting interest rates to maintaining financial stability and managing the UK’s payments infrastructure,” the report states.
While the future success of various technological innovations remains uncertain, the Bank recognizes the importance of understanding how these changes impact its mandate and enabling the financial sector to adopt these technologies safely.
“By ‘responsible innovation’, we emphasize the need to comprehend and manage the potential risks associated with innovation, rather than implying that innovation can occur without risk.”