The Argentine central bank uses Blockchain RSK technology for payment tracking. The RSK platform is entering the blockchain field for companies with a pilot program to improve direct debit processes between Argentinian banks and financial institutions.
Under the patronage of the Argentine central bank, the pilot program for the implementation of blockchain technology is approved and promoted. In this sense, the system for managing direct debits from direct accounts is used.
This Wednesday, April 21, the program was announced by IOV Labs, the developer responsible for the RSK blockchain. The company is part of the Financial Innovation Table 2019, which includes the Sabra Group, the Bank of the Province of Cordoba, BBVA, ICBC and Banco Santander.
Introduction of blockchain technology
The group has worked for several months since the end of 2019 to create a system for tracking bank account transactions via a decentralized network.
The blockchain system processes direct debit transactions for customers. If the initial payment matches the recipient of the money and not the sender, a new payment system. Enable end-to-end traceability, which is one of the main strengths of blockchain technology.
The group can use blockchain to track claims between different participants such as banks, clearing houses and financial institutions. This leads to the solution of the main problem of messaging between the different entities and the creation of a decentralized company network.
The goal of IOV Labs is to provide a simpler and more efficient alternative to traditional processing. The project is currently being tested by the banks involved in the initiative. At the end of the test, the participants decide whether the network will be expanded for other participants.
Similarly, many banks and financial agents have considered participating in the project to create a more efficient messaging and registration system than current clearing systems.
For this reason, project promoters must ensure the cooperation of all entities involved in the financial system with regard to direct debit claims. Ensure system security and data confidentiality and show that blockchain technology offers a more robust solution than traditional means.
The RSK network
The RSK network is a side chain of smart contracts supported by Bitcoin (BTC). The network token is a packaged version of BTC. The network has tried to catch up with Ethereum regarding decentralized financial functionality. It hosts two stablecoin projects, Money on Chain and Rif on Chain.
Cooperation with the Argentine financial group can mean expanding the territory of the business chains. Where the leadership projects come from the Ethereum network with Enterprise Alliance, Corda and Hyperledger.