Bank Of Canada Concludes That Blockchain Is Beneficial For Securities Settlements
May 13, 2018 Posted / 3209 Views
The three organisations reasoned that blockchain, the innovation initially created for digital currencies, for example, Bitcoin, is usable for automating securities settlements progressively. Money and assets both can be successfully tokenized for immediate exchange. CEO of Payments Canada, Gerry Gaetz, revealed to Reuters:
“This shows that it is possible to deliver payments in a way that has never been done before – by directly swapping cash from buyers to sellers, resulting in instant settlements.”
Project Jasper, the blockchain pilot, was first declared in 2016 and its most recent platform was released before the end of last year. Be that as it may, Bank of Canada Senior Special Director, Scott Hendry, puts forward the uncertainty as to the focal points the framework could offer in regards to cost savings. Reuters cites Hendry at a meeting in Toronto on recently, saying:
“We’re still uncertain after doing this work that there are significant savings possible for participants. It’s not clear that all the participant dealers and banks are going to get a significant benefit out of this settlement system.”
JPMorgan has also just filed a patent in the U.S. for a peer-to-peer payments network, which would use blockchain technology for intra bank- and inter-bank settlements.
Recently, a trial of Ripple's Xrapid liquidity solution or its blockchain controlled gross settlement framework obtained positive outcomes from financial establishments, who announced savings in transactions of about 40 to 70% and improved transactions speeds. Recently, JPMorgan additionally recorded a patent in the U.S. for a peer to peer payments system, which would utilise blockchain technology for intra and inter bank settlements.
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