UK banking bug gives customers the blockchain experience

Customers of a number of well-known UK banks were unexpectedly given the blockchain experience today after a banking app glitch meant their transactions and accounts became public.

The technical issue allowed customers from Lloyds, Halifax, and the Bank of Scotland to view the banking activity of other users. 

Some could see charge notifications from other people’s accounts, while some reported that they could view other people’s National Insurance numbers.

The BBC reports that for 20 minutes, some could see other users’ accounts, while one person was able to view benefit payments from the Department of Work and Pensions.

Read more: UK gov’t committee calls for halt to crypto donations amid foreign interference fears

One user claimed, “I can see another person’s bank account, he got paid £6,000 yesterday. Others, I can see their benefits payments, their National Insurance numbers, I can see where they work, almost their whole identity.”

The issue has reportedly been fixed, and an investigation has been launched, but it’s unclear just how many people the glitch affected.

Lloyds apologized for the incident, while the Bank of Scotland said it may have been caused by a “technical glitch.”

Last year, the UK suffered a major banking outage that left thousands unable to access their accounts. A report from the Treasury Committee later found that the country had suffered a month’s worth of outages in two years.

Glitch is the closest UK banks have got to the blockchain

The hiccup briefly brought a taste of the blockchain to a UK banking industry that’s been famously slow to adopt the technology.

Indeed, many still categorize crypto as a risky, volatile asset that requires enhanced checks. 

Digital crypto-friendly bank Revolut just secured a UK banking license after a four-year wait for a permit.

However, its crypto services will reportedly not be covered under this banking license and will still have to be offered through its Revolut X platform. 

Last September, the UK and the US partnered to launch a regulatory body that would help align each country’s approach to crypto, and help firms access capital markets from each country with greater ease. 

However, Reuters reports that both the US and UK are still split on crypto regulation, with the UK taking a more reserved approach.

The US was reportedly not impressed with the UK’s “sandbox” approach, where tokenised securities are tested in a controlled environment.

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