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“BCRA is not trying to create a cryptocurrency that is weight or reaches the end user,” said Diego Zaldivar of IOV Labs

May 24, 2020

In an interview with the Economist, Diego Zaldivar, CEO of the company, focused on blockchain solutions IOV Labs, He pointed out that the Central Bank of the Republic of Argentina (BCRA) is not proposing to produce a cryptocurrency that is the national currency of the Latin American country.

Zaldívar made the clarification regarding the blockchain technology-based solution that the monetary finance and governance body is implementing in the country of the southern cone with the help of IOV Labson a decentralized system for processing claims from direct debits on account, which are rejected by the customer.

The head of the software company stressed that unlike other countries In addition to traditional banking, the BCRA integrates decentralized experiences based on communication, certification and claimsand at no point does the project contain a question of money on the blockchain.

“BCRA is not trying to create a cryptocurrency that is weight or reaches the end user,” said Diego Zaldivar of IOV Labs
“BCRA is not trying to create a cryptocurrency that is weight or reaches the end user,” said Diego Zaldivar of IOV Labs

However, indicated that the possibilities to simulate this scenario could appear in the future, as they did in talks with other countries where the blockchain money issue is being pushed.

Diego explained this in a blockchain-based monetary issue, as France recently did “They have to be made to coexist with traditional systems. The BCRA would issue a token representing the country’s currency and then distribute it to commercial banks. via a transparent blockchain in which everyone can see how much has been poured. “

Zaldívar was also emphatic when he said that “All central banks have worked with Blockchain on initiatives for commercial banks and others for end users.” In his view, there is a conflict between the initiatives with the traditional banking block chain and the current distribution methods that need to be resolved to avoid destabilizing the financial system.

Blockchain for efficient demands

The highest financial regulator in Argentina has released a Proof of Concept (PoC) as part of the financial innovation program that it supports the public and private actors of the local blockchain scene in order to track user claims to stresses in their accounts and to react efficiently.

The Managing Authority is working to develop tools and solutions that achieve greater financial inclusion and a modern financial system that is in line with the new technologies that COVID-19 has required in the pandemic, such as Diego Zaldivar of IOV Labs, one of the BCRA- Program involved.

In addition to IOV Labs, the group that worked on this proof of concept includes the Sabra Group, the banks BBVA, ICBC, Santander Río, Interbanking, the Banco de la Provincia de Córdoba, BYMA and Red Link for testing the decentralized solution.

As reported Point telegraph, It was known that from 2019 until at least the first quarter of 2020, they worked on the design and implementation of the PoC to process debit claims on account.

The architecture of the solution is based on the intelligent contracts of the Argentine company RSKand Diego Zaldivar pointed this out “The implementation of these types of platforms can be a collaborative ecosystem for the entire financial system.”