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Japanese banking consortium continues push into fintech, turns to blockchain

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http://techwireasia.com/2017/05/japanese-banking-consortium-continues-push-fintech-turns-blockchain/

 

....The consortium is also examining the possibility of creating a brand new virtual currency that is exclusive to use by financial institutions. For now, it’s unclear exactly which blockchain system will be used, but Nikkeireports that one contender has been developed by US fintech firm, Ripple, who built the XRP blockchain.

Ripple’s technology is purported to be able to handle 200 times more data than bitcoin’s blockchain software. This could facilitate money transfer processes within seconds. Furthermore, the open ledger system could help boost banks’ security and prevent fraud from occurring as often. ....

 

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Presently, Japanese banks are using a wire transfer system for domestic transfers; it’s a system that is run by the Japanese Bankers Association. The present system is costly and domestic transfers are only available within a small window. A virtual currency system could allow customers to make transfers 24 hours a day, and push down costs to roughly a tenth of what banks are now paying to develop and maintain the current system.

Japanese companies can now take advantage of a rule shift that could drastically drive up investments in fintech.

For international fund transfers, the consortium is considering a blockchain system with the hope that it will end up costing them much less than what the SWIFT global payments system costs to run. The SWIFT system is also notorious for being the target of many hackers; the famous thefts from banks in Bangladesh, the Philippines and Vietnam are recent examples. Switching to their own proprietary system could afford Japanese banks much more security against hacks.

@bronn Very nice find this morning.  The news about Ripple's adoption arrives faster than I can read it, it seems. 

Also on a different note, are you also a GOT fan?  (There's a character named "Bronn" in that series)

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