According to a recent announcement by IOV labs, they are working with the Central Bank of Argentina and they have created a proof of concept use case for blockchain technology using their RSK smart contract.
Some of the largest banks in the country are also involved in the project. They include BBVA and Santander. The press release states that the central bank of Argentina (BCRA) will leverage the blockchain-powered solution in its interbank settlement system. Its goal is to improve the speed of transactions while ensuring end-to-end traceability.
While discussing the latest development, the CEO of IOV Labs said that given the current state of the world, it was more important now more than ever before to use knowledge to optimize processes for citizens. According to the CEO, the decision by the Argentinian central bank to utilize blockchain technology will help to improve the nation’s financial system a great deal. The result is that the nation will remain competitive on the international stage.
The Trial Run
In the trial run of the project, the participants in the blockchain network will include the central bank, major banks in Argentina, clearinghouses, as well as financial institutions in the country. While a final solution has not been developed, the central bank believes that the project could play an important role in the development of a future clearing system.
Participants in the project will also be looking to examine the commercial viability of the blockchain-powered clearing system. It will help to showcase that blockchain technology can be used outside of cryptocurrencies. Besides that, the project may integrate smart contracts in the future, which would broaden the range of applications. At the end of the test, an assessment will be made to determine whether other banks should join the network. Besides that, other potential use-cases for the network will also be identified.
Argentina and the Blockchain
It is not the first time Argentina is embracing blockchain technology. For instance, the country’s gas regulator Enargas is working with IOV Labs to deploy a blockchain-powered gas distribution platform called Gasnet.