SINGAPORE: Hitachi and Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) join hands to announce the commencement of Proof of Concept (PoC) testing of checks digitization leveraging blockchain technology in the Republic of Singapore.
Blockchain technology makes it difficult to tamper the data while sharing among multiple computers across networks. The digitalization of checks makes it possible to automate the workloads of intermediaries for checks in financial institutions, to avoid tampering and to speed up settling checks. Apart from this, it also reduces system investments and provides reliable and convenient financial services. The technology is gaining gradual importance and various efforts are being provided towards the new financial services that utilize blockchain technology, thus making financial services faster and more efficient.
PoC testing blockchain infrastructure, communally developed by Hitachi and BTMU is able to identify issues from various perspectives for instance technology, security, operation, and legal perspectives. The new infrastructure is also used for issuing, transferring and collecting electronic checks. Using the system, BTMU issues and settles checks and some of Hitachi Group companies in Singapore receive the electronic check and deposit the funds.
This latest initiative by Hitachi is being put to practical use with the aim of contributing towards the global expansion and evolution of financial services. To facilitate the advancement of FinTech services, the Monetary Authority of Singapore has released a consultation paper on proposed guidelines for a regulatory sandbox framework. With the framework, this PoC testing aims to identify issues for practical use, issuing and settling check by blockchain technology.