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Cryptocurrencies

Hitachi and BTMU pilot blockchain technology in Singapore

Tuesday 23 August 2016 | 09:15 AM CET

Hitachi and the Bank of Tokyo-Mitsubishi have started Proof of Concept (PoC) testing for digitalization of checks using blockchain technology in Singapore. 

The trial enabled the companies develop a system in which blockchain infrastructure is used for issuing, transferring and collecting electronic checks. As a result, BTMU issues and settles checks while a Hitachi Group company in Singapore receives the electronic check and deposits the funds.

By testing blockchain technology, Hitachi and BTMU can identify issues from various perspectives such as technology, security, operation, and legal perspectives, aiming to realize fintech services such as digitalization of checks.

The digitalization of checks automates the workloads of intermediaries for checks in financial institutions, thus avoiding tampering and speeding up settling checks. Furthermore, similar approaches to payment and supply chain finance are expected also in non-financial sectors in the future.

Recently, the Monetary Authority of Singapore has released a consultation paper on proposed guidelines for a regulatory sandbox framework to facilitate the advancement of fintech services. Starting from this framework, PoC testing aims to identify issues for practical use, issuing and settling check by blockchain technology on a system developed by Hitachi Asia, the Asian regional headquarters of Hitachi, and BTMU as one of the collaborative creations between Hitachi and BTMU in the Asian region. 

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