Canada’s top bank tests Blockchain for cross-border payments

The Royal Bank of Canada (RBC), the largest financial institution in the country, is now testing the blockchain for transfers between the United States and Canada. The tool has been developed with the open source technology maintained by Hyperledger and a few days ago started its way as a new layer of the payment system used by the bank. Martin Wildberger, the company’s executive vice president, told Reuters that what he called a “shadow book” allows the bank to monitor payments in real time, as they occur between US and Canadian banks. This would simplify transactions and reduce costs.

It should be noted that during the last six months, in a Toronto office, multiple tests have been performed with Blockchain. This has allowed the bank to explore the potential of the technology without completely replacing the system used. In Wildberger’s words:

“We wanted to configure it as a tool to demonstrate our leadership in the use of this technology while recognizing that it is still in its adoption phase. The use of Blockchain can simplify and increase the functionality of banking systems … We speak of a truly transformative technology, although it still needs time to mature. “

RBC is also using Blockchain to measure its impact in other areas. Such is the case that Wildberger confirmed to Reuters that the bank is experimenting with rewards to loyal consumers. On the other hand, it is worth noting that in 2016, Linda Mantia, executive vice president of payments for RBC, informed CoinDesk that it was investigating the potential of smart contracts and the use of the chain of blocks in the capital markets.

Similarly, in May, the Central Bank of Canada informed the Globe and Mail newspaper about some of the bottlenecks to the adoption of Blockchain by financial institutions in the country. However, it seems that several rough edges have been filed and those research efforts have not ceased, quite the opposite … The motivation of institutions is present to understand the properties of the technology that drives Bitcoin and more than 800 cryptocurrencies, and lawmakers are holding talks with bankers, executives and industry experts.

Eduardo Gómez

Eduardo Gómez

Eduardo Gómez is a Venezuelan freelance writer and Information's Technology Professional. He discovered Bitcoin in 2012 and has been drawn to it ever since. He also works as a Customer Support Agent at the San Francisco-based Bitcoin startup Purse.io