Central Bank of Argentina to Test IOV Labs PoC Blockchain Clearance System Built on RSK
- Blockchain Proof of Concept (PoC) by IOV labs backed by Argentinian Central Bank (BRCA) already undergoing tests seeking approval.
- It is set to be onboarded by big players in the Argentinian financial realm including the central bank.
Reports have surfaced that IOV labs – the Blockchain solutions firm – has developed a proof of concept for a Blockchain supported clearing system. The project is now undergoing testing, which is being carried out by the Argentinian Central Bank (BCRA). The BCRA will need to approve this system before it’s to be used by the financial institutions.
The system was designed to streamline payments, rendering them more efficient, while increasing transaction traceability as it makes its way to the intended destination.
Diego Gutiérrez Zaldívar, CEO of IOV Labs, was confident that the incorporation of its cutting-edge tech, with the legacy financial systems, would put them in the big boys’ league.
He remarked especially now faced by a global pandemic there was a need to fill the gap with tech to better serve their people:
“We need now more than ever to use technology in order to optimize processes and provide better services to our citizens.”
Greenlighted By Industry Titans
Most notably, if the network is approved, it will be onboarded by industry titans like Santander and BBVA, the BCRA several clearinghouses and various financial institutions. Despite not being fully approved the BCRA cited that it could be used as an alternative meanwhile.
Blockchain for Non-Cryptocurrency uses
The BCRA has been at the forefront in adopting new tech including Blockchain and others beyond cryptocurrencies.
They were keen to dissuade their citizens from using cryptocurrencies as a source of value; citing fraud concerns in 2014. The scope of the project would also shed a light on other uses of Blockchain, zeroing in on smart contracts.
The project is similar to a previous one:
Gasnet, by the country’s national gas regulator, Gasnor smart contract-based certification platform. They supply gas to more than 2 million residents. Running on an enterprise model of the RSK smart contract, Gasnet was developed to bolster Argentina's gas certification processes.