Banks in Argentina test new blockchain clearing system

Top banks in Argentina are reportedly conducting trials on a new blockchain-based system that will enable settlements amongst them, which will also form the basis for a new clearing system. The blockchain development team, IOV Labs disclosed the news on Tuesday.

Argentina sees a new blockchain clearing system alternative

IOV Labs specializes in developing financial solutions on Blockchain. It noted that the new blockchain system was created in collaboration with BCRA, the central bank of Argentina, and other large banks in the country, including BBVA.

The supposed blockchain clearing system is based on RSK Smart Contract Network, and it is being tried by the central bank. The basic objective of the new blockchain system is purported to enabling a more convenient and instant payment with fiats with enhanced traceability.

The CEO of the development team Diego Gutiérrez Zaldívar believes that the blockchain clearing system will enable a full collaborative financial ecosystem. It is expected to equally allow banks in the country to keep up with recent technological advancements towards a more convenient financial ecosystem.

Blockchain can ensure system optimization

While emphasizing the need for the blockchain clearing system, he further relayed that technologies like Blockchain are highly needed for the optimization of processes to better improve the users’ experience, especially during this current global condition.

The participants for the new blockchain system will consist mainly of clearinghouses, financial institutions, and the central bank. Another objective of the initiative today was to further indicate the use case of the technology, as per the report.

BCRA late view on crypto

BCRA always looks out for potential opportunities from blockchain technology. Its move today tends to indicate other applications of Blockchain outside digital currencies, which is apparently a known usage of Blockchain.

The central bank had perceived that cryptos are somewhat risky. As of 2014, the bank warned residents in the country to abstain from using cryptocurrencies as a legal tender, particularly Bitcoin (BTC).