As the big banks have started to get a hold into the crypto world, some of them had already had made their first practical moves towards blockchain implementation.
The Thailand bank Krungsri’s blockchain interledger as they have stated today May 22 have been used in a couple of pilot cross-border transaction tests by some of the major global banks.
The pilot test that was conducted by the Bank of Thailand’s regulatory sandbox framework and was executed between MUFG Bank which is a Mitsubishi Group member and the Standard Chartered Singapore bank.
They used the RippleNet which seemd as the best solution for a more convenient way of transferring funds by aiming to achieve rapid remittance at low cost.
At the moment these banks are using the SWIFT method for cross border money transfers. Payments take about 2-3 days to complete and settle with remittance costs skyrocketing. With the usage of RippleNet, the cross border transactions will be executed in 2-3 seconds while the cost will be very minimal. Ripple is a payment transfer system that uses Interledger technology for processing cross-border transactions.
Thakom Plyapan the head of the Krungsri Group and the one in charge of the Digital Banking and Innovation Division has stated:
“Krungsri once again achieves a success in the real-time crossing-border funds transfer service based on Kungsri Blockchain Interledger. This time we have gained trust from Japan-based Mitsubishi Corporation, one of Fortune Global 500 companies. In the pilot test, the Thailand-based Mitsubishi subsidiary sent money from its Krungsri account to Standard Chartered account of the Singapore-based Mitsubishi subsidiary via the Krungsri Blockchain Interledger technology. Successfully completed in a matter of seconds, the technology-based transaction helps enhance their subsidiaries financial liquidity toward greater flexibility and efficiency.”
In September 2017, Krungsri had made a significant changes in the financial sector of the business area with the success of the usage of Krungsri Blockchain Interledger for Thailand’s first real-time cross-border funds transfer. The first transaction deployed the technology for the money transfer between IRPC and its oversea trading partners. Based o the success of this transfer the bank had won the “Most Innovative Emerging Digital Technologies Project” at the Asset Triple Digital Awards 2017.
Over the past year Mitsubishi Financial Group had partnered with Akamai, a US tech firm, in order to design a blockchain that can handle 1 million transactions per second at a latencies of less than 2 seconds. They said they expect the service to be able to handle 10 million transactions per second as the improvement on the technology continues.
On the other side Bitcoin’s transactions can process only seven transactions per second at a latencies that exceed 10 minutes.
“For years. the financial industry has sought to utilize blockchain to secure and hasten transaction processing, and lower associated costs” said Nobuyuki Hirano the president and CEO of the Mitsubishi Group. His company is very confident that this new technology will “support significantly greater volumes of high speed payment transactions without compromising the level of security required to combat fraudulent transactions.”