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Argentina’s Banks Set to Use RSK Blockchain Technology for Tracking Payments

An Argentinian consortium of banks and expertise firms underneath the patronage of the Central Financial institution of Argentina is selling a pilot program implementing blockchain. The system can be used to deal with direct account debit claims.

The pilot was introduced on April 21 by IOV Labs, the developer of the RSK blockchain. The corporate is a part of the 2019 Monetary Innovation Roundtable, which additionally consists of Sabra Group, Banco de la Provincia de Córdoba, BBVA, ICBC, Banco Santander and others.

The group has labored for a number of months for the reason that finish of 2019 to create a system that may observe checking account transactions by way of what IOV claims is a decentralized community.

Particularly, the blockchain system will deal with direct debit transactions for purchasers, the place the fee is initiated by the receiver of the funds and never the sender. By the blockchain, the group is ready to hint the claims between completely different individuals like banks, clearinghouses and monetary brokers. On this pilot, blockchain solves the important thing downside of inter-entity messaging, making a decentralized enterprise community.

Whereas the system already exists and is usable, IOV Labs’ objective is to supply a less complicated and extra environment friendly various to conventional settlement.

The answer is being examined by the banks collaborating on this initiative. When the pilot ends, they’ll resolve if the community must be enlarged with different individuals or further functions.

RSK is a brilliant contract sidechain

The RSK community is in some ways an Ethereum competitor, however as a substitute of making an impartial community, it piggybacks on Bitcoin (BTC).

The community’s native token is a wrapped model of BTC, although it additionally has its personal token known as RIF. Bitcoin arrives to the community by way of a “federated” bridge overseen by particular entities. That is just like many variations of wrapped Bitcoin on Ethereum.

RSK has not too long ago been trying to catch as much as Ethereum when it comes to decentralized finance performance. It hosts two algorithmic stablecoin tasks, Cash on Chain and the not too long ago launched RIF on Chain.

As Cointelegraph reported in February, RSK additionally launched a bridge to Ethereum, which permits swapping any token between the 2 networks.

The collaboration with the Argentinian monetary group might be seen as an enlargement into enterprise blockchain territory, at the moment occupied by tasks just like the Ethereum Enterprise Alliance, Corda and Hyperledger.

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