Italian Banking Association (ABI) is a voluntary not-for-profit organization who has made an announcement that Italian banks will use blockchain technology. The blockchain will be used for running reconciliations.
This new approach is a part of a program called Spunta Project. The program Spunta Project is a blockchain-based application. It has undergone multiple tests.
It is stated, “The project, coordinated by ABI Lab, the banking research and innovation center promoted by the Italian Banking Association (ABI), together with technical partners NTT Data, Sia, and R3’s Corda platform, aims to implement the blockchain in interbank processes. The objective is to provide data transparency and visibility, faster transaction execution and the possibility of performing checks and exchanges directly within the application.”
18 banks are stated to be included in processes like testing, selection, and implementation related to the blockchain as of February 2019.
The voluntary not-for-profit organization Italian Banking Association (ABI) was established in the year 1919. Representing, looking after and promoting the interests related to financial intermediaries are purposes of the Italian Banking Association (ABI).
Complete visibility related to transactions is hoped to be the future result of this blockchain technology migration, Finextra reported.
Creating awareness in society and within the banking & financial system are more purposes of ABI, according to the official LinkedIn account of the Italian Banking Association (ABI).
Reconciliation experts recognized benefits. An automatic check related to mismatched transactions and the standardization of the process & the standardization of a single communications protocol along with this transactions visibility are the benefits.
Data of the blockchain technology is not stored on one node on the blockchain network, instead, it is stored on every node. All nodes are interconnected. Another innovation is a smart contract. Execution rules of an agreement are included in the smart contract. The agreement is related to data and information sharing, Financial IT reported.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]