Visa and BTL initiate blockchain-based money transfers in Europe
In a significant move towards the future of financial technology, Visa Europe Collab, in partnership with BTL Group, has announced a new initiative. The duo is trialling a bank-to-bank transaction platform using blockchain technology, with the aim of creating a fast, compliant, and low-cost interbank payment and settlement service.
The platform, built on BTL's Interbit cross-border settlement platform, leverages smart contracts to automate regulation and compliance requirements. This innovative approach is expected to streamline processes and reduce costs, making transactions more efficient.
Europe, considered the fintech capital of the world, is the chosen location for this trial. With the majority of banks having a presence in the continent, it provides an ideal testing ground for the new service.
While the names of the participating banks have yet to be disclosed, Visa Europe Collab and BTL Group have promised to share this information in the coming weeks and months. Guy Halford-Thompson, CEO of BTL Group, has stated that the pilot phase could last until the first few months of next year.
The use of blockchain technology makes transaction data immutable and visible to all parties involved, enhancing transparency and security. This is a significant step forward in financial technology, particularly in the field of trade finance, where Visa and BTL Group join a growing list of innovators, including Hitachi, BTMU, Bank of America Merrill Lynch, HSBC, IDA, and R3 CEV.
Hendrik Kleinsmiede, co-founder and innovation partner at Visa Europe Collab, believes the use of smart contracts and blockchains can create a beneficial interbank payment and settlement service. Guy Halford-Thompson, CEO of BTL Group, has further added that theoretically, there is no limit to the amount that can be transferred on the platform.
The platform is ready to be used for real bank-to-bank transactions as an alternative to the Swift messaging system. London and Europe are seen as leading the way in this forward-thinking progress compared to North America and Canada.
As the pilot phase progresses, more information about the participating banks and the platform's development will be shared. Both Visa Europe Collab and BTL Group are excited about the potential of this innovative technology to revolutionise the financial sector.
This new platform being trialed by Visa Europe Collab and BTL Group, located in Europe, aims to revolutionize the financial sector by leveraging blockchain technology for digital trade and trade finance. The innovative approach, which uses smart contracts for automated regulation and compliance, is expected to streamline processes, increase transparency, and reduce costs.
