Japanese banks build blockchain platform for money transfer

The Japanese Association of Bankers (JBA), which is made up of large and small banks, will join together to carry out this year, will be tested for centralized processes, will serve to transfer money and trade financing, will use a blockchain platform .

The Bankers Association covers the breadth of the banking industry in the country with 120 member banks, 3 banking companies, and 58 banking associations, as well as 70 associated banks including 49 foreign banks.

Appropriately, the JBA is the operator of the current interbank and bank transfer system for banks and financial institutions in Japan. The system, like any other traditional money transfer infrastructure, sees high remittance rates, liquidation times that could take days and is very costly, with a central authority and a settlement agency to handle the process, it becomes necessary .

Therefore, blockchain technology, commonly seen as the son of the Fintech poster, is seen as a faster, more effective and cheaper solution for transforming financial services.

In this sense, it is possible to glimpse the banks in a blockchain, according to a detailed report from Nikkei, which states that the association will build a blockchain platform by the end of this year, which will allow banks, large and small, to execute Testing with technology as a whole.

Significantly, the Financial Services Agency (FSA), the Bank of Japan, the country’s financial regulator and the Central Bank, respectively, will provide regulatory advice and support during the testing process. The recognition and advice of the two main financial authorities in Japan could help accelerate the implementation process of blockchain applications in the financial services industry.

The report reveals that members of the association will form “thematic coalitions” with other banks or companies to run tests on the common platform. The association is expected to support the costs incurred to run tests on the platform, an encouraging stance for smaller banks to explore blockchain applications.

In addition, the association aims to encourage collaboration between some of the large banks, which carry out their own blockchain experiments and the smaller regional banks, to bring them to the new framework ie on a single platform.

Similarly, in November 2016, three of the so-called “mega banks” of Japan have conducted pilot piles of money transfers between banks in blockchain. MUFG, Mizuho and SMBC made use of “miyabi” a blockchain platform developed in Tokyo by bitFlyer, at the moment Japan is leader in bitcoin. The nine-month proof-of-concept trial gave investigators the ability to witness 1,500 transactions per second in blockchain, exceeding the maximum speed of 1,400 transactions per second made by the current interbank cabling system.

There is no doubt that Japan’s banking industry is collectively creating blockchain research and development, so earlier this month, 47 Japanese banks participated in a successful pilot of money transfer in a blockchain cloud-based solution And developed by the successful and outstanding industrial firm Ripple

It is mentioned that it was overseen by SBI Ripple Asia, a jointly owned company between Ripple and Japanese financial services giant SBI. The successful pilot test allowed domestic currency transfers in real time, assessing regulatory adherence, standardization between banks And operational risks.

The participating banks are members of a separate Japanese banking consortium entitled “The Japan Bank Consortium to Central Provide Domestic and Cross-Border Payment” established late last year, the working group of banks devote their concentrated efforts to seize the technology Blockchain for payments and settlement solutions. The consortium consists of a third of all banks in Japan.

In short, as the Japanese Banking Association plans to launch a blockchain platform this year, Japan could become the first major economy in the world to implement a blockchain-based infrastructure to do all banking processes. New ads are expected.

Reference: cryptocoinsnews.com

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