The Central Financial institution of Argentina (BCRA) is testing a brand new blockchain-powered clearing system that could possibly be utilized by a few of the nation’s largest monetary establishments.
Blockchain developer IOV Labs mentioned Tuesday it had created a proof-of-concept, for a permissioned blockchain community, primarily based on RSK Good Contract Community, together with the central financial institution and main business banks in Argentina together with Santander and BBVA.
The answer is aimed velocity up fiat funds, make them extra dependable and introduce end-to-end traceability, IOV mentioned.
“By implementing this sort of platform, the monetary system will have the ability to construct an integral collaborative ecosystem in keeping with the present fashionable technological advances and on par with the world’s most progressive monetary methods,” mentioned Diego Gutiérrez Zaldívar, CEO of IOV Labs.
“Given the worldwide circumstances we face, we want now greater than ever to make use of know-how so as to optimize processes and supply higher providers to our residents,” he added.
Community members will embody the BCRA, banks, clearinghouses and different monetary entities. Whereas presently within the testing part, IOV and BCRA mentioned that the brand new community may kind the idea for an alternate clearing system.
Whereas Argentina’s central financial institution was an early mover in taking a look at efficiencies created by blockchain, it has additionally taken a dim view on cryptocurrencies. It issued a press release way back to 2014, telling residents they may not use digital belongings corresponding to bitcoin as a type of authorized tender and warning of potential fraud.
One of many objectives of the BCRA-initiated proof-of-concept was additionally to display there are different viable use instances for blockchain know-how apart from cryptocurrencies, specifically utilizing good contracts.
The brand new layer trialed by the BCRA runs alongside the identical strains as an analogous blockchain initiative, additionally primarily based on RSK, hosted by the nation’s main gasoline distributor earlier this 12 months. Generally known as Gasnet, the thought was to make use of distributed ledgers to convey new efficiencies to Argentina’s backlogged gasoline certification course of.
As different central banks transfer towards creating and issuing their very own digital currencies, it isn’t but clear if the BCRA’s creating interbank settlement layer may in the future kind the idea for a digital peso. Fintech Zoom has reached out for additional data, although no reply was acquired by press time.
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