Sterling Payment System

Definition ∞ The Sterling Payment System refers to the infrastructure and mechanisms used to process payments denominated in British Pounds (GBP). This includes systems like Faster Payments, CHAPS, and Bacs, which facilitate various types of financial transfers within the UK. It is a critical component of the UK’s financial market infrastructure. The system ensures the secure and efficient movement of sterling funds.
Context ∞ The Sterling Payment System is often discussed in UK financial news, particularly concerning modernization efforts and the integration of new technologies. A key discussion involves the potential for central bank digital currencies and distributed ledger technology to enhance its efficiency and resilience. Observing regulatory initiatives to upgrade and expand access to this system provides important context for digital finance developments in the UK.