Blockchain-solutions develop the international financial system
It looks like 2019 will be the heyday of blockchain technology. We recently wrote about how various business sectors integrate blockchain into their infrastructure in order to improve the quality of services provided. It can also be expected that soon the political elections in the world will increasingly be held using technology.
Now there was news that blockchain solutions were integrated in the financial sector to create a new project. It is reported that representatives of the international interbank community SWIFT are preparing to launch a trial version of the Global Payment Initiative (aka GPI). The system should start in 2019. This project was developed to support the organization in the conditions of blockchain’s active penetration into financial transactions. It is planned that the introduction of GPI will speed up the process of making payments.
What is SWIFT and what is the vocation of the system?
Before considering the details of GPI, it is worth talking about what is SWIFT.
Simply put, this is a community of many banks, organizations and corporations, as well as an international payment system. It was created for the transparent exchange of information and financial transfers at the international level. The project has been operating for 40 years and over 4 billion payments pass through SWIFT every year.
Why was GPI created and how would blockchain solutions improve SWIFT?
In essence, the “global payment initiative” is a new standard for international payments, which will be integrated into the existing SWIFT system. Blockchain solutions used in GPI will make payments many times faster.
In turn, the application programming interface (API) in the system will allow banks to access each other’s data, which will verify the payment information until the funds are sent. Thus, banks will be able to avoid mistakes even at the preparatory stage before the transaction.
Prospects for Global Payment Initiative
Using GPI will make SWIFT available to about 10,000 global banks. Innovative developments will ensure rapid verification of participants in international transfers, as well as minimize risks when sending confidential financial information. In addition, the introduction of GPI will provide an opportunity to reduce costs and waiting time for transfers, which, in turn, will positively affect the level of customer service quality.
The list of banks that have announced their participation in the Global Billing Initiative, gives hope for the success of the project. So far, 14 major financial institutions have agreed to try a test version of the system. Among them – JP Morgan, Barclays, Bank of China and CitiGroup.
Obviously, blockchain solutions get more and more attention in the world. If earlier business representatives mainly used them, then recently they have been drawing attention to the development at the state and international level.
The use of modern developments in such global projects as SWIFT can create a positive basis for further blockchain integration.