The National Banking Association of Italy has entered into a pre-production phase of a blockchain project that aims to provide distributed ledger technologies (DLT) to the 18 banks in the country. The pilot testing of the project has already been completed in September last year, and the number of participative banks has grown from 14 to 18 as the project now moves into the pre-testing phase. So that you know, these 18 banks cover almost 78% of the total banking sector operating in Italy.
The project which has been dubbed “Spunta” established the basis for the implementation of DLT in September 2018. The project will use Corda blockchain technology from R3 and help to manage better the complex discrepancies arising between the banks regularly. The potential areas of improvement include enhancing the visibility and transparency of the information, speeding up the execution of the operations, and applying a direct check and exchange mechanism on the various requests and applications received by the banks.
The Pilot testing conducted last year yielded positive results, and now this pre-production phase will focus on devising reconciliation mechanisms and generation of reliable auditing reports. The Banking Association is also working hard to test the stability of the platform so that it can handle a large volume of transactions for the entire year.
Blockchain Adoption in Italy
Italy has been at the forefront to expand the usage of blockchain and open distributed ledger technology. The country joined six other European Union nations in December 2018 to promote the use of blockchain technology in their respective regions. These seven countries believe that use of blockchain will lead to greater cooperation between them and help their citizens to protect their data and privacy by having more control over it. The parliament of Italy has recently passed a legal framework for defining broad contours of regulations related to blockchain and DLT in the country. According to the bill, digital records on the blockchain will be considered binding and have legal implications.