Both the firms will develop a system which uses blockchain infrastructure for issuing, transferring and collecting electronic checks.
BTMU will use the system to issue and settle checks, while some of Hitachi Group companies in Singapore collect the electronic check and deposit the funds.
Hitachi and BTMU are conducting the testing to know the issues in the implementation of new FinTech services including digitalization of checks. The issues pertain to technology, security, operation, and legal perspectives.
Recently, the Monetary Authority of Singapore has issued a consultation paper on proposed guidelines for a regulatory sandbox framework to improve FinTech services.
Based on the framework, the PoC testing will try to assess issues coming up in practical use of issuing and settling check by blockchain technology on a system developed by Hitachi Asia and BTMU.
Following the testing, Hitachi and BTMU will step up efforts towards putting blockchain technology into practical use.
Hitachi and BTMU said in a statement: “In recent years, various efforts towards providing new financial services that utilize blockchain technology and making financial services more efficient have been accelerated.
“Blockchain is a technology which makes difficult to tamper the data, sharing the data related to processes among multiple computers over networks. With applying blockchain technology, it is expected to reduce system investments and to realize providing reliable and convenient financial services.”
In June, Japan’s largest lender Bank of Tokyo-Mitsubishi stated that it was carrying out experiments on a digital currency using bitcoin based technology, Reuters reported.
The confirmation came in the wake of a report by the Asahi Shimbun newspaper which stated that the bank was preparing to launch its own digital currency next year.
Image: MUFG's headquarters, Chiyoda-ku, Tokyo, Japan. Photo courtesy of Kakidai/Wikipedia.
