FOSTER CITY, Calif.—Visa is moving forward on a blockchain project to test inter-bank payments made via transfers over the ledger.
The payments giant is partnering with technology firm BTL, and is inviting a select group of European banks to participate in the project, CryptoCoinsNews.com reported.
The effort, a proof-of-concept project, will use BTL’s Interbit, a cross-border blockchain remittance and settlement platform launched earlier this year, according to CryptoCoinsNews.com, which noted that Visa views the solution as a means to potentially “reduce cost, settlement time, credit risk by leveraging smart contracts to automate many of the regulation and compliance requirements of domestic and international transfers.”
The savings could be significant, as BTL estimates that remittance costs can be reduced by over 80% through the Interbit platform, compared to traditional means, such as SWIFT, the news outlet stated.
CryptoCoinsNews.com reported that Visa stated that participating banks will be able to connect to the network and send funds to other banks in the network across multiple currencies. The test should be finalized within the next 100 days.