A pilot version of the SWIFT interbank financial system on the blockchain was launched. It is designed to eliminate payment delays due to errors in legacy systems.
In this system, banks can access each other's data through an API. This will allow them to check the validity of bank account numbers before sending a payment and therefore reduce delays.
Data will be exchanged on a shared distributed ledger in the cloud, which participants will have access to and edit data on.
The move follows SWIFT's own research, which showed that almost 10% of payments on the platform were delayed due to errors by customers and bank employees.
A similar initiative was launched undertaken last year by the bank JPMorgan. The bank has launched the Interbank Information Network (IIN), which aims to reduce transaction delays through the use of blockchain technology.
Several banks, including Royal Bank of Canada, TD Bank, Santander, Credit Agricole, Reyl & Cie, Société Générale, UniCredit, ANZ, Sumitomo Mitsui Banking and ICICI Bank, are participants in the IIN.
Testing the new system, SWIFT aims to compete with JPMorgan's blockchain project and other payments startups, including Revolut and TransferWise.
A total of 15 banks, some of which are IIN members, will join Swift, including JPMorgan.
According to verdict.co.u
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