Canadian Payments the Blockchain system for the securities management and payments

On October 18, 2017 it became known the fact that the central bank of Canada, the stock exchange operator of Toronto TMX Group and Payments Canada company began joint testing of use of blockchain technology for automation of payment under securities.^[1]

The Canadian Central Bank creates a blockchain system for the securities management and payments

These three organizations announced that they are going to develop the experimental integrated platform for payment under securities and payments using the distributed register — technology which is the cornerstone of cryptocurrencies, such as bitcoin.

The initiative implements the third stage of the Project Jasper project started by the central bank of Canada in 2016. The previous stages were devoted to clearing (determination and offset of demands in reconvention and obligations) and carrying out large interbank payments using the distributed registers.

During the third stage capability of technology will be tested to perform calculations at once for several assets of one distributed register.

"More perfect process of calculations not only will allow to reduce the price of settlement transactions on securities, but also will increase reliability of a financial system, especially during the crisis periods, due to reduction of time and risk level of calculations", said in the statement of the first deputy managing director of the Central bank Carolyn Wilkins. She also added that the Central bank of Canada studies a possibility of release of own cryptocurrency.

"It is extremely important to have a financial ecosystem in which the innovative technologies are used — it allows to optimize business transactions for the benefit of all Canadian investors" — the vice president and the head of the innovative development of TMX Group John Lee noted.

Selection process of the supplier of the solution for implementation of the last stage still continues, and above-mentioned three participants of an initiative are going to announce results of testing of technology in Toronto in May, 2018.

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