Italian Blockchain Banking
Remember the great bitcoin craze of last year? The technology behind it, blockchain, is seeing a resurgence in the banking sector, specifically in Italy with a new project that is set to launch next year.
The Italian Banking Association (ABI) will revisit the method of blockchain technology to run reconciliations beginning March 2020. This marks the first use of the blockchain among Italy’s banks and will integrate distributed ledger technology in interbank processes to improve the rate of speed at which settlements occur.
The move is part of the Spunta Project that aims to enact daily rather than monthly reconciliations. The Italian word “spunta” translates literally to check.
The latest round of tests reportedly began in February with participation from 18 banks, which together represent 78% of the Italian banking sector by number of employees.
Last October marked the successful completion of the 1st trial and validated the use of blockchain to assist in backed-up banking operations to reduce discrepancies between ledgers.
In February of this year, the Italian House of Representatives approved a bill defining blockchain, as well as the technical criteria that smart contracts will have to comply with in order to have legal validity.
We hope you’ve enjoyed learning about Italian Blockchain Banking! Do you think the use of this technology is going to improve the banking system in Italy? Join the conversation below!