Regulated Liability Network

Central bank digital currencies (CBDC) - financial market infrastructures (FMI)

(RLN).

A regulated liability network is a proposal under discussion for a new global settlement infrastructure.

Proposals include the concept of a shared ledger with central bank money, commercial bank money and electronic money on the same network.

RLN benefits

"The RLN project seeks to accommodate central bank, commercial bank and regulated non-bank transactions operating within “partitions” on a single network.

The RLN would be a regulated financial marketplace infrastructure in the UK with contributors from financial institutions worldwide.

The RLN discovery phase examined three potential use cases for the network — consumer domestic payment, wholesale cross-border payment and securities settlement — and settled on the first case to pursue a proof-of-concept (PoC)...

The report found that the RLN provided several benefits for domestic payments.

It helped provide consistency between CBDCs and commercial bank money, thus helping preserve the singularity of the currency.

It could also help reduce authorised push payment fraud and give consumers more control in case of undelivered goods.

Additionally, it would improve settlement time.

Association of Corporate Treasurers blog - September 2023.

See also

• BACS
• Bank of England
• CHAPS
• Clearing House Automated Payment System
• Committee on Payments and Market Infrastructures (CPMI)
• Continuous linked settlement (CLS)
• Faster Payments Service (FPS)
• Financial Market Infrastructure (FMI)
• Financial markets
• Infrastructure
• LVPS
• Markets in Financial Instruments Regulation
• Payment infrastructure
• Principles for Financial Market Infrastructures (PFMI)
• Regulation
• Systemic risk
• Systemically Important Payment System (SIPS)

Other resources

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• About the RLN and its contributors