The bank of Tokyo-Mitsubishi UFJ, Japan`s largest bank, has tested digitized checks on a blockchain technology in Singapore. The testing was first
The bank of Tokyo-Mitsubishi UFJ, Japan`s largest bank, has tested digitized checks on a blockchain technology in Singapore.
The testing was first announced on 22 August 2016 in Singapore as a collaborative project between Hitachi and BTMU.
“In this PoC testing, Hitachi and BTMU communally developed a system in which blockchain infrastructure are used for issuing, transferring and collecting electronic checks. Using the system, BTMU issues and settles checks and some of Hitachi. Group companies in Singapore receive the electronic check and deposit the funds.”, said Hitachi`s press release available at bk.mufg.jp.
According to Hirofumi Aihara, general manager at MUFG’s Asian Systems Office, the goal of the project is to digitalize the way checks are being processed, from issuing checks to clearing checks, as cryptcoinnews.com wrote.
“From a bank’s perspective, we need to process these papers manually, including checking for fraud etc”, added Aihara.
All this is possible due to blockchain technology and its “poweful features”. Blockchain functionality can for example help to eliminate fraud by checking for the duplication of check issuance in a transaction, as Aihara commented.
MUFG explained further that similar technological approaches can be applied toward “payment and supply chain finance in non-financial sectors in the future”, as cryptocoinnews.com wrote.
Recently, Singapore has established itself as one of the leading technology and financial hubs.
In November, Singapore`s central bank has announced its plans to start a Fintech regulatory sandbox, a space where Fintech start-ups and companies can experiment with financial processes and services.