Bank of England CHAPS Payment Issue, Bull Case For Bitcoin?

A recent issue with the Bank of England (BoE) CHAPS Payment service may be the breakthrough that Bitcoin (BTC) and stablecoins have been waiting for to re-affirm their relevance in revolutionizing payments.

Is The Bank of England Under Attack? 

According to BoE, there is a global challenge that has been delaying some high value and time-sensitive payments on its CHAPS platform. Some house purchases have also been affected in the process. 

Noteworthy, most Britons use the CHAPS service for high-value transactions like a house purchase. Banks use it for sterling money market settlement and foreign exchange transactions.

Therefore, it accounts for more than 90% of total sterling payments by value. CHAPS handles as much as 360 billion pounds which is approximately $467 billion, on an average per day.

In the meantime, businesses and individuals can continue to utilize cash points, card payments and bank transfers as retail payment systems are not affected. On the other hand, those who intend to make a CHAPS payment or even received payment today, were advised to contact their bank, or other payment service provider.

Bitcoin to See New Price Rally

The cause of this delay is not known in detail but the bank confirmed that it has involved some third party supplier, industry and other authorities to resolve the issue. Also, the glitch is allegedly not considered a cyber attack but a problem that originated with part of a wider global network known as Swift. 

However, if it ends up as a serious issue, many banked people may decide against utilizing traditional systems for their payments. This becomes a crucial pivot for the cryptocurrency industry especially for Bitcoin and stablecoins like USDC. 

Choosing digital assets as their alternative settlement method might drive the mainstream adoption of these cryptos. Bitcoin and crypto payments can move as much volume daily with extra advantages. The attractiveness for this asset class is even hinged on lower cost and faster settlement time.

For a short while, Bitcoin achieved this recognition with spot Bitcoin ETFs. At the peak of spot Bitcoin ETF inflows, the firstborn crypto hit a new All-Time High (ATH) of $73,000. It has since returned to lower levels of around $63,000 but a slight shortfall in the traditional financial sector could bring its next bull run.