The Central Bank of Argentina (BCRA) is testing a brand new blockchain-powered clearing system that might be utilized by among the nation’s largest monetary establishments.
Blockchain developer IOV Labs stated Tuesday it had created a proof-of-concept, for a permissioned blockchain community, primarily based on RSK Sensible Contract Community, 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 stated.
“By implementing this kind 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 modern monetary programs,” stated Diego Gutiérrez Zaldívar, CEO of IOV Labs.
“Given the worldwide circumstances we face, we’d like now greater than ever to make use of expertise to be able to optimize processes and supply higher providers to our residents,” he added.
Community individuals will embody the BCRA, banks, clearinghouses and different monetary entities. Whereas presently within the testing section, IOV and BCRA stated that the brand new community may type the idea 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 an announcement way back to 2014, telling residents they may not use digital property resembling 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 reveal there are different viable use circumstances for blockchain expertise apart from cryptocurrencies, particularly utilizing sensible contracts.
The brand new layer trialed by the BCRA runs alongside the identical traces as the same blockchain initiative, additionally primarily based on RSK, hosted by the nation’s main fuel distributor earlier this 12 months. Often called Gasnet, the thought was to make use of distributed ledgers to convey new efficiencies to Argentina’s backlogged fuel certification course of.
As different central banks transfer towards growing and issuing their very own digital currencies, it isn’t but clear if the BCRA’s growing interbank settlement layer may someday type the idea for a digital peso. CoinDesk has reached out for additional info, although no reply was obtained by press time.
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