Did you know RBC, like many banks, has been experimenting with blockchain in its personal, commercial, and capital markets businesses. The bank recently announced the implementation of a blockchain-based shadow ledger for cross-border payments between the U.S. and Canada. The pilot project’s performance is being scrutinised by management, which is acutely aware of the need to clarify legal, regulatory, and security questions, including around the enforceability and reversibility of transactions. Other applications for banks would be keeping up with regulatory requirements around knowing their customers and applying anti-money laundering rules.
In time, if blockchain can help banks be more efficient and lower costs, it could also put cost-intensive payment systems, such as bank transfers and credit card payments, under pressure.
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