Bank of Canada and R3 experimenting with Blockchain based payment transfers

“Bank backed Blockchain fintech development consortium R3 (R3CEV LLC) is working with the Bank of Canada and the Canadian Payments Association on a Blockchain powered payment transfer system, it was revealed Thursday.

The Bank of Canada, Canada’s central bank, said that at this point they are only experimenting with the technology with the ultimate aim of building an interbank payment system that would replace existing legacy systems.

Of interest, the experimental system also includes a digital fiat currency called CAD-COIN that would be used to transfer payments between banks; under a future system banks would pledge cash collateral in a pool that the Bank of Canada would convert into a digital version with the digital currency then being used as a medium of exchange that could then be converted back to cash.”

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