Italian banks are moving from their current “interbank reconciliation infrastructure” to the Corda R3 blockchain, Coindesk said on Monday. Currently, 85% of them use blockchain to verify transactions.
Italian banks use blockchain technology
Interbank reconciliation is the process by which banks verify their books and double check transaction logs. This is done in the framework of the Italian interbank agreement adopted in 1978, which was updated in May 2019 to take account of data standardization.
With the already centralized infrastructure in place, this process took an average of 30 to 50 days and was unpredictable. According to Silva Attanasia, head of innovation at the Italian Banking Association (ABI), when using Corda blockchain, it can be completed in one day.
At the moment, as many as 55 banks (85% of all banks in the country) have used the latest data transfer technology. The platform on which the entire process takes place was designed by NTT Data and is operated by the technology company SIA.
Minimal risk of failure
Currently, the second stage of the platform tests is being carried out, and the third and final stage is to start by the beginning of October. By then, the banking association expects to include more banks in the project.
Attanasio also stressed the importance of changing the reconciliation process and the technology used.
“The benefit is related to the new standardization more than to the technology itself.”
As the interbank reconciliation process is not customer oriented, there is minimal risk of damaging your banking infrastructure in the event of any failure.
“If we had failed in this process, the worst that could have happened would be we could have a problem in the exchange of information between banks. Customers are not affected, businesses are not affected. It was a natural sandbox. “
– she added.
In addition to adopting a blockchain infrastructure, the Italian Banking Association (ABI) also announced its readiness to test the digital euro in the banking environment. However, no information on this has yet been made public.
Last year, ABI also established a working group to research digital and cryptocurrency resources.