Ripple joining forces with Canadian bank for new project
The Bank of Canada and Ripple Net have been cooking something up together…
by Manoj Sharma for CNR
The Bank of Canada is reportedly developing a proof-of-concept with help from academia and the private sector to better understand the scope of financial technologies.
In an interesting turn of events, the central bank and Ripple Net collaborated for writing the white paper of Project Jasper, a collaborative approach between the public sector and the government. This initiative will help the central bank to test how efficient blockchain technology is when used for wholesale fund transfer.
During Phase I and II, the bank was in the exploratory stage with an aim to settle high-value interbank transactions and how DLTs clear. After both the phases, the Bank of Canada would analyze the outcomes, and accordingly, would give the go-ahead for DLT integration in core financial systems as securities and Forex.
In general, the main goal of the Bank Of Canada here is to ensure that Project Jasper adheres to all the existing financial regulations. That it should comply with the Principles for Financial Market Infrastructure. So far, Project Jasper meshes well with credit, liquidity, collateral requirements and settlement risks set by the Principles for Financial Market Infrastructures (PFMI).
The Bank of Canada has also partnered with MIT Media Labs, Monetary Authority of Singapore, Bank of Japan and European Central Bank to create a “cross-border and cross-currency” system. Needless to say, the system should be effective, inexpensive and faster. At least as soon as there is complete integration.
A detailed white paper on the findings of Jasper Phase III has been published by Bank of Canada, TMX Group, Payments Canada, R3, and Accenture, which also include the feasibility of settling and clearing securities over a P-o-C leveraging on R3’s Corda platform after successful simulation.
Accenture’s John Velissarios said, “the platform is for clearing and settlement of securities and it could play an important role in promoting financial market integration”.