Members of a Japanese bank consortium focused on blockchain are set to test a virtual currency-based funds transfer system. Bank of Yokohama, Mizuho Financial Group and Resona Bank are among the banks involved in the new trial.
According to Nikkei, the banks want to assess the ability to send domestic fund transfers during non-operating hours, and to explore how a virtual currency used between banks could cut costs. Further, the banks are said to be weighing the creation of a wholly new virtual currency or digital token for this purpose.
Additionally, the test could expand beyond domestic transfers into international level, mitigating the time differences in cross border time zones.
“The consortium is also considering testing virtual currency-based international fund transfers. The hope is that the use of blockchain technology may be able to lower costs compared with SWIFT, the global payments network,” Nikkei said.