The Central Bank of Argentina (BCRA) is testing a new blockchain-powered clearing system that could be used by some of the country's largest financial institutions
Blockchain developer IOV Labs said last week that it had created a proof-of-concept, for a permissioned blockchain network, based on RSK Smart Contract Network, in conjunction with the central bank and major commercial banks in Argentina including Santander and BBVA. "By implementing this type of platform, the financial system will be able to build an integral collaborative ecosystem in line with the current modern technological advances and on par with the world’s most innovative financial systems," said Diego Gutiérrez Zaldívar, CEO of IOV Labs. Network participants will include the BCRA, banks, clearinghouses and other financial entities. While currently in the testing phase, IOV and BCRA said the new network could form the basis for an alternative clearing system. While Argentina's central bank was an early mover in looking at efficiencies created by blockchain, it has also taken a dim view on cryptocurrencies. It issued a statement as far back as 2014, telling citizens they could not use digital assets such as bitcoin as a form of legal tender and warning of potential fraud.