October 6, 2021, | AtoZ Markets – A group of European banks has recently finished the initial steps in blockchain trial for interbank reconciliations.
The 14 banks led by the Associazione Bancaria Italiana (ABI), disclosed in a press release, that the first phases establish a “basis for subsequent synergistic implementations of DLT technologies.”, while the pilot recruits EDCCs (smart contracts) that govern the transfer of data.
The group started the project a few months ago by loading two months of “real data” onto a Corda-based blockchain network.
Financial news outlets explain that, as with other trials of this nature, each joining bank forms a node, or connected computer, on the network, for allowing the decentralized blockchain to inhabit the entire network, rather than a single centralized computer.
ABI confirmed in the press release as well, that the overall performance was good, which means the group is ready to further its movement to the next phase.
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“The application of distributed ledger technology helps to improve transactions between banks, in particular some aspects of the current operations that can cause complex discrepancies, like the time needed to identify mismatched transactions between two banks.”, as per the release.
In collaboration with developers NTT Data and the Italian enterprise network SIA, the group of 14 banks work together on the project.
It is worth mentioning that the group includes prominent names in the banking sector, like BNP and Credit Agricole.
In a similar context, the last week, Poland’s PKO Bank Polski took a further step toward bringing blockchain-based banking in Europe, as it launched what might be “the largest consumer banking blockchain utilisation yet in the region.”, according to media sources.