Argentine banks implement payment tracking using Blockchain RSK

22 Jul 2022 11:06
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In the following article, Primexbt will bring you information about Argentine banks implementing payment tracking using Blockchain RSK

Argentine banks implement payment tracking using Blockchain RSK

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An Argentine consortium of banks and technology companies under the umbrella of the Central Bank of Argentina is launching a pilot program on Blockchain. The system will be used to process direct account debit requests.

The pilot was announced on April 21 by IOV Labs, the developer of the RSK Blockchain. The company was part of the 2019 Financial Innovation Roundtable, which included Sabra Group, Banco de la Provincia de Córdoba, BBVA, ICBC, Banco Santander and several others.

The team has been working for several months since late 2019 to create a system that tracks bank account transactions through a decentralized network.

Specifically, the Blockchain system will process direct debit transactions for customers, where payments are initiated by the receiver, not the sender. Through Blockchain, the team can track claims between different participants such as banks, clearing houses and financial agents.

Although the system is live and usable, however, the goal of IOV Labs is now to provide a simpler and more efficient alternative to the traditional way.

The solution is being tested by participating banks. When the pilot is over, they will decide if the network should be expanded with other participants or additional applications.

See more: If history repeats itself, Bitcoin will have a huge recovery

RSK is a sidechain* smart contract

The RSK network is in many ways a competitor to Ethereum, but instead of creating a standalone network, it is based on Bitcoin (BTC).

The network's native token is a BTC-pegged version, although it also has its own token called RIF. Bitcoins come to the network through a bridge that is linked by other organizations and overseen by the entities.

RSK has recently been trying to catch up with Ethereum in terms of decentralized finance functionality. It hosts two stablecoin projects, the recently launched Money on Chain and RIF on Chain.

As Cointelegraph reported in February, RSK has also launched a bridge to Ethereum, allowing for the swap of any token between the two networks.

The partnership with the Argentinian financial consortium can be seen as an expansion into the enterprise Blockchain territory, which is currently occupied by projects such as the Ethereum Enterprise Alliance, Corda, and Hyperledger.

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