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The Central Bank of Argentina has become one of the handful of regulators around the world working with blockchain technology and Bitcoin. It joined hands with IOV Labs, a Bitcoin startup, to work on a blockchain-based payment network.
Working on blockchain
The Central Bank of Argentina is experimenting with blockchains. It announced a new partnership with Bitcoin startup IOV Labs yesterday to trial a new blockchain-based payment system. The system is a proof of concept designed for a permissioned blockchain network. It would run on RSK technology ad use Bitcoin smart contracts to help the bank manage claims and payments.
IOV Labs suggests that the idea for the system spiraled out of the Financial Innovational Roundtable of 2019 which aimed to integrated different technology players in the country. It focused specifically on collections and payments alongside other processes that could improve the experience of banking clients.
The Argentine central bank has worked with several partners to develop its blockchain solutions. Its partners include BBVA, ICBC, BYMA, RedLink, Interbanking, Banco Santander, Banco de la Provincia de Córdoba, and he Blockchain Group, which comprises of the Sabra Group and IOV Labs.
What is the new blockchain solution?
The new blockchain, based on RSK-based proof of concept mechanism creates a common framework that integrates the elements of interoperability. This helps in connecting individual systems maintain by fintech companies, banks, and even public/private operators. The bank gets to monitor the status of each transaction and claim from start to finish in real-time.
IOV Labs CEO Diego Gutiérrez Zaldívar noted,
“We are convinced that the implementation of this type of platform will be able to build a collaborative ecosystem for the financial system as a whole.”
The startup is strengthening its presence in Argentina with its technology solutions. It bought the country’s largest social network, Taringa last year, aiming to integrate its Bitcoin-based technology on the platform. The acquisition would help the company in using the social network’s user base for promoting the use of RSK blockchain.
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