SWIFT blockchain testing shows progress
13 October 2017 Brussels
Image: Shutterstock
Proof of concept testing on SWIFT’s distributed ledger technology (DLT) sandbox shows it can be used to support “real-time fluidity monitoring and reconciliation", according to an interim report.
The report said that the application can deliver “business functionalities and data richness” required for industry-wide adoption, but also raised certain issues before it can be achieved.
Challenges include the development of unique value propositions and integration with legacy back-office applications.
The proof of concept was developed to explore whether DLT can be used by banks to improve the reconciliation of their nostro databases in real time, optimising their global liquidity.
So far 33 banks have signed up to the testing as part of the SWIFT gpi programme.
Damien Vanderveken, head of research and development at SWIFT, said despite significant developments it will take time before the blockchain technology is “mature and scalable enough”.
Under the current banking model, banks manage their funds in overseas accounts through debit and credit updates and end-of-day statements, resulting in expensive cross-border payments.
Wim Raymaekers, head of banking market and SWIFT gpi at SWIFT, said: “The DLT proof of concept supports SWIFT’s goal of making cross-border payments more efficient, a mission we have championed through SWIFT gpi, which offers customers fast, transparent and traceable cross-border payments.”
The report said that the application can deliver “business functionalities and data richness” required for industry-wide adoption, but also raised certain issues before it can be achieved.
Challenges include the development of unique value propositions and integration with legacy back-office applications.
The proof of concept was developed to explore whether DLT can be used by banks to improve the reconciliation of their nostro databases in real time, optimising their global liquidity.
So far 33 banks have signed up to the testing as part of the SWIFT gpi programme.
Damien Vanderveken, head of research and development at SWIFT, said despite significant developments it will take time before the blockchain technology is “mature and scalable enough”.
Under the current banking model, banks manage their funds in overseas accounts through debit and credit updates and end-of-day statements, resulting in expensive cross-border payments.
Wim Raymaekers, head of banking market and SWIFT gpi at SWIFT, said: “The DLT proof of concept supports SWIFT’s goal of making cross-border payments more efficient, a mission we have championed through SWIFT gpi, which offers customers fast, transparent and traceable cross-border payments.”
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