Most of the banks across the country are using blockchain technology for the exchange of data transfer related to Interbank. Reportedly, approximately 85% of Italian banks are currently utilizing the Corda blockchain of R3 for exchanging their transfer data. The purpose behind using R3’s Corda blockchain is that it will increase the speed of the transaction logs’ process and will make the exchange of data transfer faster.
Corda Blockchain will make the process faster
The Italian Banking Association’s head of innovation Silvia Attanasio said that the banks needed to change the technology they are using for the transfer data exchange as well as they also had to change the process for reconciling interbank. Previously, the process of reconciliation of interbank used to take more time to get completed. The whole process was completed within the duration of thirty to fifty days.
However, Attanasio stated that now with the help of R3’s Corda blockchain, the reconciliation process does not take too much time and only takes one day to complete. Therefore, almost all of the Italian banks have now tapped Corda blockchain for this purpose.
Currently, 55 banks in total across the whole country are using Corda blockchain for exchanging interbank data transfer. The Italian Bank Association (ABI) expects to increase this number from 55 to 70 and then bringing 100 banks on the R3’s Corda blockchain platform.
Attanasio said furthermore:
“The benefit is related to the new standardization more than the technology itself. It’s like the rhythm you set on your metronome that sets a [faster] timeline.”
The head of the blockchain at Banca Mediolanum Demetrio Migliorati says that almost every bank was having its own software for sharing interbank data transfers before using Spunta. Adding more to it, she said:
“If we failed in this process, the worst thing that could happen was to have a problem in the information exchange between banks. Clients are not affected, the companies are not affected. It was a natural sandbox.”