The Chancellor of the Exchequer, Rachel Reeves, has announced that the Digital Gilt Instrument (DIGIT) or UK Gilts, which leverages distributed ledger technology (DLT), will move forward.
The Chancellor stated:
“The UK is leading the way on digital innovation, and the creation of DIGIT will help to transform our world-leading capital markets sector and drive economic growth.”
In a public statement, the Chancellor said the financial industry is invited to help shape DIGIT. The start of the procurement process for DIGIT is expected to test the demand for and use of blockchain. Reeves believes this will have the potential to help modernize financial markets by increasing efficiency, reducing costs, and enhancing security.
Yesterday, the Chancellor met with a group of Fintech leaders to discuss the key industry and how the government can help it develop. Digital government bonds were said to be part of the conversation.