BNB Paribas; In order to measure the efficiency of Ethereum (ETH) and Tezos (XTZ) platforms in financial processes, it came together with several different organizations and started a new test study. BNB Paribas, the ninth largest bank in the world, will collaborate with CA CIB, Caisse de Dépots, Tokeny and The Blockchain XDEV.
BNB Paribas wants to see if it is possible to issue an interbank digital currency that banks will use among themselves and support it with blockchain technology. Wondering how useful distributed ledger technology (DLT) would be for such a coin, the bank launched a new process for testing Ethereum (ETH) and Tezos (XTZ) networks.
Here are the details of the Ethereum and Tezos based project
Ethereum and Tezos networks were preferred in the initial phase for the pilot study to be carried out in partnership with BNB Paribas, CA CIB, Caisse de Dépots, Tokeny and The Blockchain XDEV. In the press release published by The Blockchain Group, it is not explained why these networks are preferred.
According to the information in the press release, these organizations will test what will happen if token or securities transactions within the blockchain network are atomized. The five partners who came together for this study plan to test a feature called atomic delivery. This feature is thought to increase transaction speed and reduce cost. The Reserve Bank of Australia met with several different organizations earlier this month to test whether the atomic transaction feature could be adapted to digital central bank money (CBDC).
The partners will conduct several different experiments as part of the pilot study and examine whether this project can be used with different technologies. These five names, who will work on both public and private blockchain platforms, will try to trade with several different currencies between several different parties using these platforms.
Studies will be completed next year
According to SP Global data, these studies, which include the eighth largest bank in the world, will not only measure the efficiency of Ethereum and Tezos networks. According to the information in the announcement, the partners will also collect information on the legal dimension of the said transactions during these studies. The information obtained in this process will be used to assist the European Union on digital asset regulation.
The partners therefore announced that they want to scale up this work as much as possible and work with other financial institutions in Europe. Inviting international organizations to join the partnership, these five names announced that the pilot study to be carried out will be completed in 2021.