Russian Association of corporate Bank joins Central Bank of the country, for the test block of the network Masterchain, the launch of which was announced last week.
Association tests Masterchain, for more free interaction of the national banking system, with the use of the platform Masterchain. This step aims to use the platform as a replacement to the SWIFT network, which was first discussed in April 2018.
The project was developed by national financial technological Association in cooperation with the 14 largest banks, including VTB.
According to the white paper, the system will include Russian banks and state institutions, responsible for registration of contracts and market regulation. According to developers, the transition to Masterchain in the processing of mortgage contracts to reduce operating costs up to five times, and the transaction will take several minutes.
Alternative to SWIFT
It is expected that the project will create a mechanism for verification KYC, based on digital identity, in order for banks to share credit reports and information on cases of fraud, without violating banking secrecy. The system will also be responsible for Bank guarantees and letters of credit.
However, the ultimate purpose of Masterchain still is to replace SWIFT. This is caused by fears that due to the introduction in 2014 of U.S. sanctions and the European Union against Russia, eventually the country can remove from the SWIFT system, so we developed a special project to create an alternative system of financial communication. Previous tests showed problems with the processing of specific document formats.
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