Deloitte has continued its focus on providing insight for it’s rather large and well-established client based on blockchain technology applications in their latest paper entitled “Blockchain: Democratized Trust.” One of their more prominent examples in this paper of large scale businesses using blockchain technology is the Royal Bank of Canada in their venture into new-aged remittances.
Including a mixed bag of bank-to-bank, business-to-business and peer-to-peer remittances, Royal Bank of Canada operates across 40 countries and with 16 million customers worldwide. They, like most other major international and domestic banks, operate under largely restrained and inefficient financial operations when it comes to cross-border operations. Due to multiple middlemen, bureaucratic red tape and high fees, transferring money overseas has become anywhere from an annoying to prohibitive task for people all over the world, regardless of their country of origin or economic status.
Even though this traditional process of cross-border remittance is painfully slow and expensive, it’s considered largely a secure and reliable process which hasn’t had enough pressure on it to change in the market, until now. With blockchain technologies starting to gain acceptance and application in smaller-scale businesses, they are being recognized by important executives in the Fintech sector as a potentially necessary play for the future.
Eddy Ortiz, RBC’s vice president, of solution acceleration and innovation spoke about blockchain technology stating, “as we came to understand more about the challenges we faced, we realized the underlying technology powering it was what was particularly exciting.”
One blockchain related technology that has been particularly appealing to the Royal Bank of Canada is Ripple, a real time gross-settlement-system. Ripple has attracted particularly large enterprise level financial and software companies seeking a more secure entry into the blockchain technology space since its beginnings in 2012.
Before rushing headlong into deploying blockchain technology across all of their verticals, RBC intends to work with Ripple to develop a limited production solution to test the solution’s effectiveness and security. Additional areas that RBC is looking to explore with blockchain technology include customer loyalty programs and eventually smart contracts.
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