In a recent panel, as part of a Unitchain digital blockchain conference, ABI innovation director Silvia Attanasio explained why the bank chose to follow the decentralized blockchain route for Spunta, its blockchain solution built on the Corda business blockchain platform.
If ABI had taken the decentralized route, the bank would have needed to locate a centralized part to collect and manage a large amount of data on several fronts, Attanasio said at the July 8 panel, pointing out the rationale for ABI’s choice of a decentralized approach.
„It was not so easy to identify a single actor who could have executed the centralized solution,“ he said.
Italian banks to use blockchain to boost settlements and improve transparency
Spunta is a way of transferring information
The Associazione Bancaria Italiana, or ABI, also known as the Italian Banking Association, operates as a center on behalf of Italian banks, Attanasio said. The organization decided to transition to a blockchain-based format called Spunta.
„Spunta is a reconciliation process based on a bilateral account,“ Attanasio said, noting that the system is a background method of operation. „It is an exchange of information rather than an exchange of value,“ he added.
JP Morgan suggests that digital money is on the move and that the adoption of blockchain in banking is years away
ABI introduced the blockchain-based concept in June 2019, setting a March 2020 launch date. The system, known as Spunta, essentially improves settlement and transaction processes between banks.
Starting with 32 banks, ABI began its transition to Spunta on March 1, Attanasio said. „I am particularly proud, especially as an Italian, because we set this date, I think in March 2019, and we were so punctual,“ he said. „We were not a single day late,“ he said. The ABI has also added other banks since March.
„By October 1st, the old process will be dismissed and the old rules will be cancelled,“ he said.
The Italian Banking Association is ready to adopt the digital euro
Spunta’s decentralized approach changes the previous format
„We wanted to transform the process, remodel the process, to include some key component of the distributed paradigm, and this was possible with the distributed solution,“ said Attanasio. This, as opposed to a centralized format that requires each bank to maintain its data, transferring that data to a single centralized database from time to time.
The ABI, however, chose a blockchain structure with permission, rather than a structure without permission that facilitates the participation of anyone. The choice stemmed from the institution’s position in the banking sector and the importance of entrusting information to specific parties, Attanasio said.
In recent years, a number of other major institutions around the world have recognized the potential of Bitcoin Lifestyle, exploring various solutions with the technology, including Walmart, JPMorgan Chase Bank and many others.