JPMorgan, the largest financial institution in the United States, has launched a pilot program for a blockchain-based payment system. Royal Bank of Canada (RBC) and Australian Bank (ANZ) have also joined the program. According to the Financial Times, 75 more banks have now joined the experiment.
French bank Société Générale and Santander, Spain's largest bank, are among the new banks participating in a program called IIN, which aims to speed up transactions between financial institutions. Jason Goldberg, a staff analyst at JPMorgan, told the Financial Times that traditional financial institutions are concerned about the growing number of new fintech startups that offer more efficient payment solutions. Goldberg said: Blockchain is a way to retain our existing customer base. are suspended due to processing errors or to receive confirmation. Sometimes these issues can cause a transaction to be delayed for days or even weeks.
The INN blockchain pilot program is currently targeting $14,500 worth of payments processed daily, but as more institutions join the project, the number and value of daily transactions will increase. Currently, INN only processes transactions in US dollars, but JPMorgan plans to add other major currencies in the future.
Richard Chambers, a senior executive at InvestX and former director of corporate transactions at the Royal Bank of Scotland, believes that the INN program is an attempt by large banks to “even the playing field.” At the moment, many startups like TransferWise are able to conduct international transactions much cheaper and more efficiently.
According to Chambers, banks have been exploring and experimenting with blockchain technology for a while now, as they want to speed up the processes of processing, settling and issuing payments using distributed ledger technology.
According to https://www.cryptoglobe.com/
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