Vancouver startup, Blockchain Tech Ltd. (BTL), announced that it plans to provide Visa with software to power their pilot project.
The project will run a test to explore blockchain technology and its use cases for creating more secure and efficient settlements between banks. BTL uses a combination of the Ethereum platform and their own software, which will address two major problems facing blockchain in finance: privacy and speed.
Blockchain Tech connects computers by creating a public ledger of transactions, which can’t be altered without other parties becoming aware. This works well for competing banks since it takes out the need for trust. They can settle payments and execute contracts without using a middle man.
When it comes to banking, the blockchain can automate time-consuming manual processes. This usually happens when banks settle large payments and reduce the cost of transferring money across borders. By leveraging smart contracts, they plan to streamline and automate many of the regulation and compliance requirements of the domestic and international transfers.
Hendrik Kleinsmeide, co-founder and Innovation Partner at Visa Europe Collab, states:
“Here at Visa Europe Collab we are looking for partners to join a new pilot we’ve begun with blockchain specialist BTL Group.”
Visa and BTL plan to invite more European banks to participate in their project to showcase the advantages of this new tech. The participating banks will be able to utilize the blockchain network to send funds in multiple different currencies to other banks within the network. This PoC (Proof of Concept) event will ensure that all participants take away new knowledge and insight into how the blockchain can benefit the banking system.
Visa and BTL plan to fortify other banks’ knowledge and experience using the blockchain technology.
“For me the opportunity is a fascinating and potentially very beneficial one. Through the use of smart contracts and blockchains I believe we can create a fast, compliant and low-cost interbank payment and settlement service, with embedded regional compliance.”
“BTL is a technology company whose current business is focused on developing blockchain technologies to disrupt and transform existing industries. Technology is developed in-house and through BTL's incubator and accelerator programs, based in Vancouver, British Columbia. BTL's first technology platform is a remittance business called Xapcash which, combined with BTL's proprietary cross border settlement technology (Interbit), is focused on leveraging blockchain technology to create rapid and cost effective "cash-in cash-out" settlement solutions from Canada and the United Kingdom to target countries.”