Argentina’s Central Financial institution Trials Blockchain for New Interbank Settlement Layer

The Central Financial institution of Argentina (BCRA) is testing a brand new blockchain-powered clearing system that might be utilized by a number of the nation’s largest monetary establishments.

Blockchain developer IOV Labs mentioned Tuesday it had created a proof-of-concept, for a permissioned blockchain community, primarily based on RSK Good Contract Community, along with the central financial institution and main business banks in Argentina together with Santander and BBVA.

The answer is aimed pace up fiat funds, make them extra dependable and introduce end-to-end traceability, IOV mentioned.

“By implementing any such platform, the monetary system will have the ability to construct an integral collaborative ecosystem in keeping with the present fashionable technological advances and on par with the world’s most modern monetary techniques,” mentioned Diego Gutiérrez Zaldívar, CEO of IOV Labs.

“Given the worldwide circumstances we face, we want now greater than ever to make use of know-how with a purpose to optimize processes and supply higher providers to our residents,” he added.

Community individuals will embrace the BCRA, banks, clearinghouses and different monetary entities. Whereas at the moment within the testing part, IOV and BCRA mentioned that the brand new community might type the premise for an alternate clearing system.

Whereas Argentina’s central financial institution was an early mover in efficiencies created by blockchain, it has additionally taken a dim view on cryptocurrencies. It issued a press release way back to 2014, telling residents they may not use digital belongings similar to bitcoin as a type of authorized tender and warning of potential fraud.

One of many objectives of the BCRA-initiated proof-of-concept was additionally to exhibit there are different viable use instances for blockchain know-how apart from cryptocurrencies, particularly utilizing sensible contracts.

The platform additionally has potential to type the underlying tech for a future central financial institution digital foreign money. CoinDesk has reached out to ask concerning the risk.

The brand new layer trialed by the BCRA runs alongside the identical strains as the same blockchain initiative, additionally primarily based on RSK, hosted by the nation’s major gasoline distributor earlier this yr. Referred to as Gasnet, the concept was to make use of distributed ledgers to convey new efficiencies to Argentina’s backlogged gasoline certification course of.

As different central banks transfer towards growing and issuing their very own digital currencies, it isn’t but clear if the BCRA’s growing interbank settlement layer might at some point type the premise for a digital peso. CoinDesk has reached out for additional info, although no reply was acquired by press time.