blockchain interbank Italy
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Reports say 18 banks in Italy (under the Italian Banking Association) is now in the process of testing R3 Corda based blockchain interbank solution. Corda is the open-source distributed ledger technology platform of R3 blockchain consortium.

Blockchain Interbank System by Italian Banks – Details

In a statement, the Italian Banking Association (ABI) has said that the platform has been developed in association with its 3 technical partners:

  • R3 blockchain consortium
  • Sia, an Italian ICT company
  • NTT Data, a Japanese IT company

They have named their project “Spunta”. 18 Italian banks (which account for 78% of the total banking sector of Italy, in terms of employees) are currently testing this platform.

Interbank system powered by the Italian Banking Association successfully passed the initial testing phase back in October 2018. At that time 14 banks participated in the testing process.

The association of Italian banks has said that the interbank blockchain system is currently in the pre-production phase. After conducting a series of tests initially, ABI will launch it for a focus group. It is learned that the developers will also carry out testing of the platform’s stability. This will be done through the generation of transaction volumes over the 365-days period.  

blockchain interbank Italy

In fact, additional updates are being developed by the Italian Banking Association along with its partner. The pilot banks will again test these additional updates. Therefore, this will lead to the complete reconstruction of the production processes of the banking sector in Italy.

Why is AIB carrying out these Tests?

AIB is going full throttle in bringing the coveted change in the Italian interbank system because of two developments. The first development is a part of the decision made by 7 countries in the European Union. The second one is concerned with a parliamentary bill passed in the Italian parliament.

  • In Dec’18, seven European Union countries (Italy, France, Spain, Malta, Greece, Portugal, and Cyprus) decided to promote the use of Distributed Ledger Technology in the region. They regarded it as an important innovation for the economies in the southern European Union.
  • Following this decision, the Italian parliament passed a bill saying that the smart contracts need to comply with blockchain, DLT, and other technical criteria for complying with legal validity.

Conclusion

The Corda platform of R3 is used by leading financial companies all over the world. Some of the examples include Commerzbank (German), Natixis (French), Rabobank  (Dutch), and SBI Holdings (Japan). Therefore, completion of the ongoing test and consequent will help bring a paradigm shift in the European banking sector and beyond.

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