Bitcoin, Cryptocurrency And Blockchain News

Philipines Project i2i to Use Kaleido Blockchain for Rural Bank Integration


The Union Bank of the Philippines are going to use the Kaleido blockchain to help banks in more remote locations integrate with main financial institutions. Developed by startup Consensys, Kaleido sits on the Ethereum blockchain and will help interbank transactions become instantaneous. According to a Philippine Information Agency article:

Currently rural banks are not members of the Philippine Clearing House and the SWIFT (Society for Worldwide Interbank Financial Telecommunications) Network. Their business processes are very manual and paper-based as requirements to be part of BancNet, Philippine Clearing House Corporation and SWIFT are too complex.

Inter-bank transactions can take up to a month in the Philippines, due in part to the country being composed of around 7,000 islands. However, blockchain technology would reduce this to a maximum of five minutes, and will of course dispose of the need for paper-based record keeping and transacting, which is still widely used in the Philippines.

Justo Ortiz, the Chairman of UnionBank, announced the partnership at Coindesk’s Consensus 2018 Conference on May 15th. There is, as yet, no official launch date for this partnership.