Blockchain Implemented In Swiss And Italian Banks

Blockchain Implemented In Swiss And Italian Banks

The Italian Bankers Association and its research center (ABI Lab) are working on a blockchain solution, which will supposedly secure and speed up the process of transactions between banks. Reportedly, the R3 Corda platform will be the main technology used in the project.

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The Italian Bankers Association and its research center (ABI Lab) are working on a blockchain solution, which will supposedly secure and speed up the process of transactions between banks. Reportedly, the R3 Corda platform will be the main technology used in the project.

In the pilot, ABI Lab together with NTT Data Italia will rely on distributed ledger technology to monitor transactions, detect any mismatches and improve traceability and transparency. R3 Corda might be of help because it works with blockchains that keep record of every action in the network. Hopefully, the number of issues caused by human errors will diminish after the implementation of DLT, because those errors are costly and time-consuming to resolve.

The president of ABI Lab, Pierfrancesco Gaggi, believes in the success of the project, stating that it will save time and resources and will improve the work efficiency. Furthermore, he adds that depending on the results, DLT may be implemented in other areas of banking in the near future. ABI itself is quite large organization, it consists of 160 banks and 65 communication technology institutions.

Acoording to R3 CEO, David Rutter, the pilot is going to ease the pressure on bank employees, because many of the labour-intensive operations will be automated. Even better, DLT will significantly reduce back-office costs and better time management.

Meanwhile in Switzerland, a whole wave of blockchain startups has entered the business this year. Being one of them, Crypto Finance raised 13 million EU to fund its application’s banking license. Crypto Finance’s services include storage facilities, brokerage and asset management.

Switzerland has its own Crypto Valley around Zug. The majority of startups are working hard on creating a stable alternative to traditional banking and Crypto Finance are not the only ones applying for license. Lykke and MtPelerin also have conversations with licensing authority Finma.

Crypto Finance was established in June this year and currently has 26 employees. Investors include former banker Rainer-Marc Frey and Dr. Philipp Cottier. They both assume that it is crucial to obtain a license if they are to offer full range of cryptocurrency services.

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