Bank of Canada Creates “Cross Border, Cross Currency” System on R3 Corda to Rival Ripple
The Bank of Canada (BoC) is working on a new and innovative concept for a bank – a proof-of-concept approach. Two other industries, the private sector and academia, are helping it achieve its goal. Together, they’ll establish a new financial technology that features an underlying blockchain system and that prioritizes DLT.
Interestingly enough, the BoC partnered with R3 to develop the Project Jasper’s whitepaper. The project is a collaborative effort between the governmental and public sectors and it aims to determine the efficiency of blockchain solutions for wholesale fund transfer. During the first two phases, the bank handled the exploratory stage so that it could be determined how DLTs interact with high value interbank transactions. Thereafter, the BoC would permit DLT integration into its financial systems, such as securities and forex – but depending upon the initial outcomes.
In general, the bank’s overarching goal is to safeguard that Project Jasper is complaint with the financial standards set forth by the industry. Meaning, it must comply with Principles for financial Market Infrastructure. Such compliant will allow oversight for systematically important infrastructure. At this stage, it seems that the project is faring well and is meeting its goals.
Apart from R3’s participation, the bank also has worked with MIT Media Lab and various other banks, such as the Monetary Authority of Singapore, the European Central Bank, and the Bank of Japan to develop a “cross border, cross currency” system. The bank hopes that it will be an efficient, fast, and cheap interaction.
At this point, the bank, Accenture, Payments Canada, and R3 released a joint report that discusses the third stage of Jasper and the potential of clearing and settling securities when it comes to proof of concept leveraging on the R3 platform. According to John Velissarios at Accenture, the platform “is for clearing and settlement of securities and it could play an important role in promoting financial market integration.”