The leader of the revolution at the association of Banks in Italy, Silvia Attanasio, said there has to be a modification to both the technology hidden in the exchange of data and interbank reconciliations. This used to take a while and was not predictable in the former system. The normalcy for reconciliation was between thirty to fifty days, but on Corda, a small analysis and management consultancy firm, reconciliation finished off in 24 hours.
A law to guide interbank transfers in the Italy was issued in 1978. It also shows the procedure of banks forwarding physical tapes. In May 2019, an agreement on interbank was revised to encompass data standardization. A window was set in Italy around March 1st and October 1st 2020, to integrate the standard and a Bitcoin block explorer service which banks can utilize to abide by the new law.
The plan is in its second stage, with about 85 percent of banks in Italy now using Corda for interbank transfer. The organization anticipates having over 70 banks in the 3rd and last phase scheduled for October.
Attanasio stated that the advantage has more connection with the current standardization than the technology.
Advantages of Blockchain
Innovation Manager & leader of Bitcoin block explorer service Demetrio Migliori explained that before Spunta, banks had different software to interchange data associated with the interbank transfer.
Attanasio mentioned that if there’s a failure in the procedure, the worst-case scenario would be errors in the information exchanged between banks. Customers nor firms are affected.
Contrary to Corda, the organization is considering a centralized database and does not want data to be saved on different ledgers at all banks.
Banks are now carrying out tests by sharing KYC (know your customer) data and assurance of credit on Spunta.
Source: Coindesk
