One of the Middle East’s largest banking teams is partnering with the central financial institution of the United Arab Emirates on a blockchain trial targeted on financial institution test fraud.
Emirates NBD first waded into the blockchain world final yr, when it began testing the tech for funds purposes and joined an expansive analysis and information-sharing effort backed by the Dubai authorities.
According to Ali Sajwani, Emirates NBD’s chief info officer, these early efforts (each inside and collaborative) yielded key insights, particularly that “the technology already has some real world applications for the short to medium term”.
That led to the funds trials in addition to ongoing work to use the tech to its paper test course of. Under the proposed system, the beneficiary of a cheque (in addition to their financial institution) would have the ability to test whether or not it’s legitimate, counting on a blockchain as a tamper-proof verification layer.
That work, Sajwani mentioned, has continued to advance, and Emirates NBD is working with the UAE’s central financial institution on the initiative.
He went on to clarify:
“We are currently working with the central bank of the UAE to add the blockchain security feature to our paper cheques, so we can prove that the technology is fit for purpose at production volumes. We are very excited at this prospect and we welcome the cooperation of other banks and institutions in developing the use case into not only a new standard for cheques but also to develop best practices that we can apply in other use cases.”
In feedback, Sajwani additionally touched on the financial institution’s participation in a cross-border funds trial with India-based banking establishment ICICI.
That take a look at, unveiled in October, concerned transmitting a transaction between an ICICI department in Mumbai to an Emirates NBD department in Dubai, recording on a distributed ledger.
When requested in regards to the outcomes, Sajwani mentioned that whereas informative, the take a look at wasn’t geared toward fixing quick boundaries to funds – particularly pace.
“While cross-border payments seem like a natural fit for application of blockchain technology between banks, they are largely solved with current technologies in terms of speed,” he informed CoinDesk. “As an example, our direct remittance service to India, Pakistan, or the Philippines takes a minute today.”
At the identical time, the financial institution positioned the take a look at as one with a watch on the horizon, indicating that future developments across the tech may tip the scales to additional purposes.
“Even although right now’s blockchains can not function with such pace and quantity, we all know that is solely momentary. Blockchains present super potential in standardizing message circulate between transacting events and simplifying community structure,” Sajwani mentioned, including:
“Our cross-border remittance exams purpose to leverage the expertise to open extra channels with a lot much less effort.”
Image through YouTube
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