Bank of Canada’s Blockchain Trails Results shows Distributed Ledgers are Effective
May 12, 2018 1:02 pm
Bank of Canda’s DLT Pivot shows the Instant Securities Settlement Possible
Bank of Canada and two partners on the project revealed that their latest “Project Jasper” blockchain trials show that distributed ledgers are efficient at automating securities settlements in real-time.
According to the announcement, the latest stage of the research effort moved on from its previous concern on payments on a proof-of-concept for “integrated security and payment settlement platform,”
Gerry Gaetz, president, and CEO of Payments Canada said:
“This shows that it is possible to deliver payments in a way that has never been done before – by directly swapping cash from buyers to sellers, resulting in instant settlements.”
However, there is a warning while blockchain is often promoted as a way for enterprises for cutting costs by removing agents and bringing in new capabilities, the partners showed that using the tech for settling securities transactions might not be such a money-saver.
Scott Hendry, senior special director at Bank of Canada, told:
“We’re still uncertain after doing this work that there are significant savings possible for participants. It’s not clear that all the participant dealers and banks are going to get a significant benefit out of this settlement system.”