The Central Financial institution of Argentina (BCRA) is testing a brand new blockchain-powered clearing system that may very well 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 Smart Contract Network, along side the central financial institution and main industrial 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 the sort of platform, the monetary system will be capable to construct an integral collaborative ecosystem in keeping with the present fashionable technological advances and on par with the world’s most progressive monetary programs,” 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 embrace the BCRA, banks, clearinghouses and different monetary entities. Whereas at present within the testing section, IOV and BCRA mentioned that the brand new community might type the premise for an alternate clearing system.
Whereas Argentina’s central financial institution was an early mover in efficiencies created by blockchain, it has additionally taken a dim view on cryptocurrencies. It issued a statement way back to 2014, telling residents they may not use digital property equivalent to bitcoin as a type of authorized tender and warning of potential fraud.
One of many targets of the BCRA-initiated proof-of-concept was additionally to exhibit there are different viable use instances for blockchain know-how apart from cryptocurrencies, specifically utilizing sensible contracts.
The brand new layer trialed by the BCRA runs alongside the identical strains as a similar blockchain initiative, additionally primarily based on RSK, hosted by the nation’s main gasoline distributor earlier this 12 months. Generally known as Gasnet, the concept was to make use of distributed ledgers to carry 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 might sooner or later type the premise for a digital peso. CoinDesk has reached out for additional data, although no reply was obtained by press time.
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