Japanese Banks Form Blockchain Consortium
Exchange services seem perfectly suited for embracing blockchain technology. With faster settlement times and a public ledger to record transactions, the opportunity is well worth exploring. A new consortium of Japanese banks will work on using the blockchain for centralized domestic and foreign exchange services.
Japanese Banks See The Value in Ripple For Blockchain Purposes
This new consortium is formed by SBI Ripple Asia Co, Ltd and SBI Holdings, Inc. Both firms want to work on improving the settlement services available in Japan today. SBI Ripple Asia has been exploring the possibilities of distributed ledger technology in the settlement platform sector already.
Several inaugural members have been announced already, including the Bank of Yokohama and SBI Sumishin Net Bank. It is interesting to see two Japanese banks join this consortium right away, as it indicates the need for improved technologies. In the world of finance, distributed ledgers are the hot commodity right now, that much is certain.
Furthermore, both SBI Sumishin Net Bank and Bank of Yokohama have been implementing several new Fintech initiatives over the past few years. The formation of the Consortium for Considering Using Blockchain Technology to Centrally Provide Domestic and Foreign Exchange Services seems to be the next logical step.
Things are being pushed forward at an accelerated rate in Japan, though. The Consortium plans to utilize blockchain technology as soon as October 2016 Such a sudden implementation will help address some of the key issues associated with settlement in Japan today. There is a diverse need for remittance concerning smaller-value settlements, which seems to be a perfect use case for blockchain technology and will allow payments 24 hours a day to match the needs of a changing society.
The testing phase is expected to run until March 2017, by when a settlement platform using Ripple will be established. In the meantime, new members will be added to this Consortium. Primarily financial institutions will be solicited in the coming weeks. If everything goes according to plan, the Consortium will consist of 30 banks by March 2017.