On September 29, Ansa, an Italian financial news revealed that Italian banking association had successfully completed the first stage of testing of a blockchain-based system. The project is an interbank system that utilizes the blockchain technology.
The association which is a consortium of 14 Italian banks is working on creating a blockchain system that will ease interbank processes. In particular, the project will fast-track interbank transactions, promote a more transparent system and help verify and share information. In addition, another source revealed that the project will heavily utilize smart contracts to eradicate the flaws of existing interbank platforms.
The report went further to reveal that the first stage testing involved 1.2million movements between the 14 nodes of the blockchain. As such, the association is planning on moving to the second stage. In the second stage, the association will use a blockchain app to register the daily operations of its member banks.
The project which was first announced in June is called the Spunta Project, and it is powered by ABI Lab via their banking research team. Some of the banks that make up the association include BNL – Gruppo BNP Paribas, Banca Mediolanum, Banca Monte dei Paschi di Siena, Banca Sella, and Nexi Banca.
The Rise Of Blockchain Banking Systems
The Spunta Project mirrors the blockchain as a service platform owned by R3 consortium called Corda. Corda is a platform that is designed to allow easy transactions between financial institutions, and it has recruited some of the biggest firms in the banking industry.
In addition, JP Morgan’s blockchain interbank system dubbed the Interbank Information Network (IIN) recently recruited over 70 banks to its platform. Some of the banks joining JP Morgan’s initiative are Santander and Societe Generale.
Obviously, the banking industry is dedicating a lot of resources to blockchain-based banking systems which will ease the way they do business.