Physical checks can go into the past with the new development of China’s Central Bank, has created a blockchain system for translation these financial documents in digital form.
Local media yesterday, Financial News published an article in which the Deputy head of the laboratory of digital currencies the people’s Bank of China Di Ganges (Gang Di) said that the Bank’s specialists have developed a system capable of producing digital receipts on the blockchain.
About plans to use blockchain technology to combat counterfeit checks lab China’s Central Bank announced in 2016. The relevance of these studies stems from the fact that the use of checks for remittances carries the risk of double spending and counterfeiting, and fraud by third parties acting as banks.
At the beginning of 2017, the specialists of the laboratory conducted successful tests of the prototype system and then continued working on it for another year. In the end, was created a blockchain-based platform that uses an algorithm PBFT consensus and, in fact, tokensecret checks.
According to Dee, the main advantage of this system is that regulators can track the entire path of different digital checks, and those that are redeemed for cash, and those that act as collateral to support other corporate assets.
“Regulators will have full access to the record even for code updates that not only improve efficiency, but also reduce costs, rejecting the need to carry out the process of cross-checking the translations manually,” explained Dee.