Barclays Africa Bank joins R3 blockchain consortium

The R3CEV blockchain consortium has added its first African banking institution as a member, as it aims to form a global partnership to design and apply blockchain distributed ledger technology to promote financial market development.

Barclays Bank branch Absa, part of Barclays Africa Group Ltd, is the first African bank to join the global R3 blockchain consortium, which has partnered with some of the world’s leading banks to design and deliver advanced distributed ledger technology for global financial markets.

Absa to work with other South African banks

Joining the R3CEV blockchain consortium will strengthen Absa’s collaboration with several other South African banks to develop Africa’s first blockchain banking solution. According to Absa, the purpose of the working group is to build blockchain-based solutions for common financial services needs, with all participating banks sharing intellectual property.

Absa’s addition adds to the diversity of the R3CEV blockchain consortium, joining China’s largest insurer Ping An, Spain’s BBVA, Commonwealth Bank of Australia, Royal Bank of Scotland, Japan’s Toyota Financial Services and Brazil’s Itaú Bank.

“We see huge potential for African financial institutions to embrace disruptive technologies like blockchain and use them to empower themselves and improve the lives of their customers,” Andrew Baker, CIO of Barclays Africa Corporate and Investment Bank, said on the bank’s website. “However, we can only realize the true value of blockchain technology if we work together and share solutions. Currently, blockchain is maturing, but it is still not widely trusted by financial institutions and consumers. With the formation of more industry alliances such as R3 and increasing recognition from regulators, it will not be long before blockchain technology is widely accepted and this disruptive innovation becomes mainstream.”

Baker stressed that Barclays Africa has been experimenting with blockchain for some time, noting that the bank launched an Africa-wide blockchain supply chain challenge through its Open Innovation Program in 2015 and co-hosted the second Blockchain and Bitcoin Africa Conference in 2016.

Andrew Baker, Chief Information Officer, Corporate and Investment Bank, Barclays Africa