In order to improve processes and speed of transactions, almost the entire Italian banking system abandons the old technology. Now, the Blockchain and the Italian banking are merged in more than 80% to give better answers to various financial aspects.
In this way, interbank transfers in Italy are made through the Corda R3 Blockchain platform. This, according to sources, would be significantly accelerating the process of double verification of transaction records.
Thus, interbank reconciliation, in the same way as the technology underlying data exchange, no longer lived up to the needs. For this reason, according to the authorities, the change towards Blockchain technology was becoming a first-rate need.
Blockchain is more efficient in the eyes of Italian banking
According to Silvia Anastasia, head of innovation at the Italian Banking Association (ABI), the difference is abysmal. In statements collected by the CoinDesk portal, the official assures that, with the old system, the average time for reconciliation was almost two months.
At the same time, he explains, with the merger of Blockchain (Corda) and Italian banking, that process takes just 24 hours. This is one of the main reasons why the banking system of this nation has overwhelmingly turned to the use of new network technology.
It should be borne in mind that the Italian interbank agreement was signed in 1978 and consists of a physical transfer between the banks. In May of last year 2019, the agreement was updated, with the possibility of integrating banks with Blockchain technology.
Likewise, the agreement with Corda, the aforementioned operator in the Blockchain network, allowed the banking of that nation to merge with the blockchain. Virtually all transactions of this nature are made with the new technology.
The world’s banks and the blockchain
Since the appearance of Blockchain technology, the attitude of banks has changed in a radical way. From being hostile and openly public enemies to any signature or intention related to the blockchain, they are now one of the main users.
This is because, in a globalized world, people want immediacy in their transfers. This is a problem to which the traditional financial system is unable to respond. The clearest example is seen in the obligatory merger between Blockchain and Italian banking.
The other case in which this trend is evident is in the case of digital currencies. A few years ago, banks were totally denied any relationship with them. But people’s appetite for Bitcoin has forced central banks to enter the process of designing their own digital currencies.
The lack of liquidity, the economic problems caused by the Covid-19 pandemic, as well as the high commissions of the network payment systems, are opening the doors to cryptocurrencies. In this sense, banking has begun to feel overcome.
Unable to compete with the new form of finance, the case of the merger of Blockchain with banking is not an isolated case of Italy. It is a process that will be generalized until reaching global proportions.
The efficiency and transparency that the Blockchain network allows, helps banking institutions to perform better.
Data to consider
- Italy’s interbank agreement dates from 1978 and was updated in 2019 and 2020 to allow the use of Blockchain technology.
- The speed of the Blockchain will allow interbank transactions to be carried out in an infinitely faster way.
- The Blockchain Corda R3 network was designed by the company NTT Data and is currently operated by the banking technology firm SIA.
- 55 are the Italian banking institutions that operate with this Blockchain network, which accounts for 85% of the national total.
- It is expected that, in a short period of time, their number will reach 100 banks.
The information in this content has been extracted from reliable sources detailed below.:
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: Coindesk.com, Corda.net and Abi.it.