The Central Bank of Argentina is testing a decentralized system to optimize banking procedures.
Blockchain developer IOV Labs announced on Tuesday that its proof-of-concept will handle banking customers’ debit claims through a permissioned blockchain network. In addition to Argentina’s central bank, several major commercial banks have joined the trial, including Banco de la Provincia de Cordoba, BBVA and Banco Santander.
The solution, based on RSK’s enterprise smart contract technology, aims to optimize procedures among a network of banks, clearing houses, financial agents and providers, streamlining clearing systems and expediting the speed of fiat payments.
IOV Labs (Internet of Value) builds low-cost and secure platforms that are designed to power the new global economy.
The proof of concept is targeting the use of blockchain to send messages among banks and financial institutions. If the pilot is successful, it will serve as a springboard for a new clearing system offering end-to-end traceability that’s based on blockchain technology.
Diego Gutiérrez Zaldívar, CEO of IOV Labs, says the goal is to showcase the new technology through practical and commercial implementation, and to demonstrate how blockchain and smart contracts can be used to power transparent, secure and durable financial networks beyond cryptocurrencies.
“We are convinced that, by implementing this type of platform, the financial system will be able to build an integral, collaborative ecosystem in line with the current modern technological advances and on par with the world’s most innovative financial systems.
Given the global circumstances we are facing, we need now more than ever to use technology in order to optimize processes and provide better services to our citizens.”
After the initial central bank pilot, the participants will assess whether they can expand the network by adding more members and new features.
Last month, IOV Labs launched Gasnet, a blockchain network focused on Argentina’s natural gas distribution ecosystem. That network also uses IOV Labs-powered RSK smart contracts to streamline the user experience, lower costs and speed up the processing time for customers who are waiting for gas service installations.
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