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Technology News: Bank Of Canada Begins Trials For Using Blockchain Technology

In the latest technology news, the blockchain technology can certainly be used to clear and settle stocks as unveiled by Bank of Canada. The bank conducted a series of trails and experiment with the blockchain technology and their existing operating system to settle securities. TMX Group Ltd., which is the stock-exchange operator and the nation’s payments system made use of distributed ledger technology to settle and clear securities on an integrated platform in the Project Jasper research initiative.

This project is said to have involved in creating and testing of the system designed to be incorporated within the current market infrastructure. Cash and securities were brought on the ledger based platform through the issuance of digital depository receipts by Bank of Canada and Canadian Depository for Securities. This facilitated the participants to settle replicated securities against simulated central bank cash on the network.

The proof of concept approved clearing and settlement of the payment. It is possible to complete the post-trade settlement of a transaction on a distributed ledger technology platform reducing the counterparty risk to a great extent as well.

In the latest technology news, the conducted trail showed that it is doable to send payments by directly exchanging cash from buyers to sellers on a blockchain cryptocurrency technology platform, which is also capable of preserving market participant’s privacy. The conclusions of the trails were disclosed earlier this week in a report co-written with blockchain-software company R3 and Accenture Plc. (Via Bloomberg)

Expert Comments

Bank of Canada’s senior special director of financial technology Scott Hendry stated that distributed ledger technology is very promising and has the potential to trim down costs for participants and unlock new opportunities. He further added that the trails were done to determine the maximum benefits of such financial system as mentioned by Business Wire.

John Lee, the Enterprise Innovation & Product Development Managing Director of TMX Group, mentioned that Project Jasper findings present an essential insight into the understanding of blockchain technology adaptation and integration in the global financial ecosystem, as per the latest technology news.

[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. ]
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Neha graduated in Electronic Media and has worked with Times group for 3 years with an overall experience of 6 years. She is passionate about learning languages and is a certified French Language Expert and IELTS Trainer. Neha writes breaking cryptocurrency news stories for OWLT Market.

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