Visa's new European proof-of-concept project: Using blockchain to optimize domestic and cross-border payment processes between banks

Visa’s London Innovation Lab announced that its recent blockchain trial will focus on interbank payments.

Visa Europe Collab said it has partnered with Toronto startup BTL Group to study how the company’s interbank settlement system can use blockchain and smart contracts to optimize domestic and cross-border payment processes between banks.

Visa Europe co-founder Hendrik Kleinsmiede said they are inviting European banks to participate in the trial to explore the potential of blockchain technology by using it in real-world payment cases.

During the development and implementation phase of the Proof of Concept (PoC), we will work closely together to ensure that everyone involved has access to the latest technology and a deep understanding of the important role of blockchain in the future of interbank payments.

According to the Financial Times, Visa Europe and BTL Group will complete the project within 100 days.

The project is the latest blockchain research initiative of Visa Europe Joint Lab. In July, Visa Europe and Bitcoin startup SatoshiPay launched a micropayment trial. Its first blockchain research dates back to last year, when it explored remittances with blockchain company Epiphyte.

The project is the most innovative proof of concept initiated by Visa Europe so far. Through the research of this project, Visa Europe can explore the application of blockchain in extending the traditional payment network in developing countries.