Barclays Testing Bitcoin Payment System

Barclays Testing Bitcoin Payment System

Barclays is one of the the UK’s largest banks and is working with a Bitcoin Exchange platform to test the use of Bitcoins as an alternative payment system.

This is part of a long string of similar actions by various Wall Street firms looking at this new digital currency and the technology used.

“The Sunday Times” reports that Barclays already has a staff of 75 specialists working in a research lab in London to find a secure way to implement the use of Bitcoin.

Barclays will not deal directly with this Cryptocurrency and will work with a well known Bitcoin exchanger, probably Safello.

The Barclays Bitcoin program if focused on allowing charities to accept Bitcoin payments in their barclays bank accounts. This would be the first time when a big bank has directly undertaken such a large experiment with this Cryptocurrency.

The Bitcoin Exchange Platform Safello already signed a contract with Barclays in June and the charities Bitcoin payments program will be the first case in that proof-og-concept contract.

HSBC and Citygroup will also approach the Bitcoin implementation and there are other banks investing in various startups related to Bitcoin and running experiments in their own labs.

Barclays is the first Tier one bank testing Bitcoin in a live environment. These accelerator programs are useful for both Banks and Startups. The Startups get direct access to Banks and banks get access to the technology behind the Bitcoin payment system.

A big impediment is that the legality of Bitcoins varies from country to country and even if in US or UK there is a general opinion that Bitcoin must be considered a legal currency there’s still a debate on how to tax the use of Bitcoins.

This step made by Barclays in the implementation of Bitcoin could be a sign that very soon more banks will follow and we will be able to accept Bitcoin payments into our Bank Accounts.

Tags: Bank AccountsBarclaysbitcoin

Read All Articles By

Favorite Quote: "Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value" - Eric Schmidt, CEO of Google

Add Your Comment

You must be logged in to post a comment.