UAE retail banking giant Emirates NBD volition innovate blockchain applied scientific discipline into cheques to minimize fraud as well as strengthen their authenticity.
Announced this week, the banking grouping has launched the airplane pilot stage of its maiden titled ‘Cheque Chain’. According to the bank, the ‘initiative is the get-go of a meaning strategy yesteryear Emirates NBD to integrate blockchain applied scientific discipline into existing products as well as services.’ This sweeping adoption of blockchain technology, the banking concern adds, is to implement the best digital safety systems available. Blockchain applied scientific discipline enables an immutable timestamped tape of information stored on a decentralized ledger that tin terminate hold out accessed yesteryear multiple participants at the same time. The applied scientific discipline does non rely on a unmarried key database, negating fears of a unmarried indicate of failure as well as altogether making for a quantum boundary inwards digitized security.
“[I]n exploring the potential of blockchain technology, nosotros are delighted to hold out the firstly banking concern inwards the solid soil to utilize this remarkable novel applied scientific discipline to strengthen as well as upgrade our internal processes,” stated Emirates NBD Group CEO Abdulla Qassem.
Cheques over a Blockchain
The initial stage of the maiden volition run across unique QR (Quick Response) codes on every leaflet of a cheque majority which similar a shot makes it harder to forge cheques. Subsequently, the QR code volition register every cheque on to the bank’s blockchain .
This allows the banking concern to validate the cheque’s authenticity at all times, alongside access to its root fifty-fifty after the cheque is received as well as cleared.
While details rest scarce, the banking group’s principal executive added:
Cheque Chain volition select an added layer of safety to our cheque clearing system, as well as ensure that each cheque issued volition hold out verified nether the bank’s arrangement alongside its ain unique QR code providing meaning improvement inwards cheque security.
In its airplane pilot phase, the banking concern volition force the novel cheque books on to its ain employhees to assess the technology. H5N1 client rollout volition follow subsequently this year.
The endeavor follows to a greater extent than or less other notable endeavor yesteryear the Bank of Tokyo-Mitsubishi UFJ, Japan’s largest bank, which is also testing digitized checks on a blockchain. In Oct terminal year, Emirates NBD became the firstly UAE mortal sector banking concern to case blockchain-based real-time international money transfer as well as merchandise finance transactions alongside Indian partner banking concern ICICI. The firstly transaction aimed for a low-cost, near-instant international remittance transaction. The second, facilitated an international merchandise finance transaction to import shredded steel melting flake from Dubai to Mumbai, India. Both pilots proved successful. Emirates NBD is quick to indicate out that it is a fellow member of the Dubai Future Foundation’s Global Blockchain Council, which launched in Feb 2016. Dubai’s largest banking concern adds that its binge coincides alongside the Dubai Blockchain Strategy, an sweeping initiative that began alongside the government’s annunciation to see all of its documents on a blockchain yesteryear the yr 2020. Featured ikon of Emirates NBD from Shutterstock.