WOW!!! Visa launches interbank transfer system using blockchain

Testing of the system on the basis of "smart contracts" will last 100 days. The Company expects that it will be a serious competitor Swift.

Visa has aimed at reforming the market of interbank payments - the company offers lenders try to send money using a system blockchain, writes The Financial Times.

Before you take this step, Visa and a half years studying blockchain technology. Then the company in conjunction with the start-BTL Group, involved in electronic payments, has started to adapt blockchain for money transfers between banks. One of the founders of the Visa Europe Collab (innovative business units) Klyaynsmid Hendrick noted that the project aims to "reduce the difficulties of inter-bank transfers in the country and abroad."

"We offer some of the European banks to take part in this project together with Visa and BTL. Financial institutions who agree to it will be able to connect to the network, and transfer funds to other banks in different currencies, "

The new system can become a serious competitor Swift - technology used for interbank transactions at the moment. Visa believes that will reduce the cost of such transfers, to reduce the credit risk, but at the same time, increase the speed of such operations. The Swift, not wanting to lose their position in the market is also starting to look closely to blockchain.

Hendrik Klyaynsmid told the FT, that counts for 100 days to prove the effectiveness and benefits of the new system. He believes that at this time Visa will find partners in the banking sector, which will make transfers using blockchain technology. The essence of the new project is the use of "smart contracts" - the system will be able to handle the bulk of the bank requests for money transfers between different structures.

"I believe that with the help of blockchain and" smart contracts "we will be able to create a fast, versatile and cost of interbank payments system, which will be adapted to the needs of specific regions", - shares his plans Hendrik Klyaynsmid.

Innovation division Visa has announced work on other projects with blokcheyn technology - we are talking in particular about micropayment systems, transfers between devices and companies.