Members of a Japanese bank consortium focused on blockchain are set to test a virtual currency-based funds transfer system.
Institutions including Bank of Yokohama, Mizuho Financial Group and Resona Bank are taking part in the new trial, according to a report from Nikkei.
According to Nikkei, the banks want to assess the ability to send domestic fund transfers outside of normal operating hours, as well as to see 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, the outlet reported.
“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.
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