The Japanese Bankers Association is pushing development of a common blockchain platform for the country’s banks to begin trials of core banking processes.
The Japanese Bankers Association (JBA) has said it will work to provide a common basis for members to experiment with the technology that underpins virtual currencies like bitcoin, possibly leading to cheaper, more convenient financial services.
As reported by the «Nikkei Asian Review» the association is aiming to provide a common platform for members of all sizes to run experiments with the technology.
Dramatic Cost Reduction
Money transfers over a blockchain in Japan could potentially see charges drop up to 90 percent, when compared to existing costs for instant payments, according to the report.
The first trials of blockchain-based systems by member institutions are expected to start this fall. The bankers association will open contract discussions with tech companies for the trials.
In Singapore last year IBM and Bank of Tokyo-Mitsubishi UFJ (BTMU) announced a prototype of smart contracts on a blockchain to improve the efficiency and accountability of service level agreements in multi-party business interactions.
