Bank of Canada creates the "Cross Border, Cross Currency" system on R3 Corda to Rival Ripple

Bank of Canada establishes the system

The Bank of Canada (BoC) is working on a new and innovative concept for a bank – a proof-of-concept approach. Two other industries, the private sector and the academic world, are helping to achieve its goal. Together, they will establish a new financial technology that presents an underlying blockchain system that gives priority to DLT.

Interestingly, the BoC collaborated with R3 to develop the Jasper project white paper. The project is a collaborative effort between the public and public sectors and aims to determine the efficiency of blockchain solutions for the transfer of funds to wholesalers. During the first two phases, the bank managed the exploration phase so as to be able to determine how the DLTs interact with high-value interbank transactions. Subsequently, the BoC would allow the integration of the DLT into its financial systems, such as securities and forex, but depending on the initial results.

In general, the bank's main objective is to safeguard the fact that the Jasper project complies with the financial standards established by the sector. It means that it must comply with the Principles for the financial market infrastructure. This compliance will allow the supervision of systemically important infrastructures. At this point, it seems that the project is doing well and is reaching its goals.

In addition to R3's participation, the bank also collaborated with MIT Media Lab and various other banks, such as the Singapore Monetary Authority, the European Central Bank and the Bank of Japan to develop a "cross-border, cross-currency" system. The bank hopes it will be an efficient, fast and economical interaction.

At this point, the bank, Accenture, Payments Canada and R3 released a joint report analyzing Jasper's third phase and the potential for clearing and settling securities when it comes to testing the lever concept on the R3 platform. According to John Velissarios of Accenture, the platform "is for clearing and settlement of securities and could play an important role in promoting the integration of the financial market".

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