IOV Labs, which is the developer of the RSK blockchain, announced April 21 that an Argentinian consortium of banks and technology companies under the thumb of the Central Bank of Argentina will pilot a blockchain program. The system being piloted would handle direct account debit claims.
RSK is a part of the 2019 Financial Innovation Roundtable, which includes Sabra Group, Banco de la Provincia de Córdoba, BBVA, ICBC, Banco Santander, and others. The group has been at work since the end of 2019 to create a system to track bank account transactions through a decentralized network, according to IOV.
The blockchain system would handle direct debit transactions for customers in which payments are initiated by the receiver of the funds and not the sender, as happens in the case of subscriptions. The Roundtable traces claims between different participants, such as banks, clearinghouses, and financial agents. In the pilot, the blockchain solves the key problem of inter-entity messaging for a “decentralized” enterprise network.
IOV Labs’ claims the system has been created, and the goal is to create a more efficient alternative to the traditional settlement mechanisms. Banks will determine if the network should be rolled out to other participants or additional applications.
RSK network started out as a project to bring smart contracts to blockchain technology via a second layer that runs parallel to the bitcoin blockchain. The RSK blockchain features a native token that features a wrapped version of BTC, though it also has its own token called RIF. Bitcoin arrives to the network through a “federated” bridge by specific entities.