The major bank of Canada is reportedly working on a proof-of-concept along with the private sector and academia to research the scope of the opportunities that the latest fintech has to offer.
Ripple is involved
Canada’s central bank is collaborating with Ripple Net in order to write a whitepaper for a new research Project Jasper. This is intended to be a joint venture of the public sector and the Canadian government. The new venture will enable the bank to see how effectively DLT can be used when it comes to large-scale transfer of funds.
When the project was at phases one and two, the Bank of Canada (BOC) was exploring the terra incognita to test high-value transactions between banks with the use of Blockchain. On stage three, the BOC will be putting the outcomes of the experiment together for an analysis and then would either greenlight Blockchain to be implemented to work in core financial processes, such as Forex and securities, or reject it completely.
BOC has set a global aim
Overall, the bank intends to make sure that the results of its new research project can suit all major financial institutions on the global scale. The initiative of the bank should go in line with the Principles for Financial Market Infrastructure (PEMI).
At the current stage, the Project Jasper matches the requirements in the credit, liquidity and collateral sphere, as well as risks regarding settlements related to the PEMI.
Other participating entities
Canada’s Central bank has also joined forces with MIT Media Labs, Bank of Japan, European Central Bank, and Singapore’s monetary regulator. They all expect the project to deliver the basis for building a system which would be cheap and work faster than existing solutions.
The whitepaper of stage three of the project can be viewed here.