The Japanese Bankers Association (JBA) said that it will build a platform for major and regional banks by the end of 2017, in order to conduct blockchain tests together, Nikkei reported.
With the platform, small and major banks in Japan will explore and test blockchain technology for services like money transfers under the auspices of a trade group. The necessary regulatory advice and support during the tests will be provided by the Financial Services Agency and the Bank of Japan.
According to JBA, its members will form theme-based coalitions with other banks and organizations in order to run the blockchain tests on the platform. The Association will likely take up the responsibility of the associated costs for running the system and the results will be reported to the group to create sector-wise expertise.
The JBA that operates conventional inter-bank transfer system for financial institutions across Japan, will also study the potentials of blockchain’s cost-cutting in trading electronically recorded monetary claims.
According to a survey by the association last year, close to 70% of banks and financial institutions is adopting blockchain technology for their services. Recently, Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group have run blockchain tests for remittances within Japan.
The association looks forward that the new framework will promote collaboration between large and regional banks.
