Today, October 18, 2017, a report indicates that the blockchain pilot Project Jasper has entered its third phase of development.
Toronto Stock Exchange Operator TMX Group LTD, Payments Canada, and the Bank of Canada (BOC) are working see if the platform can serve as a securities settlement system. This phase of testing is specifically focused on blockchain technology’s capability to settle multiple assets on a single ledger.
As reported by ETHNews, BOC’s initial phases of testing with Project Jasper lead to the determination that the system was not yet ready for practical use. This occurred after a single point of failure was discovered when deployment changes were made by the BOC to accommodate privacy concerns.
A similar test case called Project Ubin is an ongoing joint effort between the Monetary Authority of Singapore and BCS Information systems, also based in Singapore. This pilot is based on prototype software extrapolated from Project Jasper code. Ubin was deployed on a private Ethereum network to test interbank transfer systems.
Project Jasper represents the hopes of central banks that blockchain technology can potentially disrupt a fee-intensive intermediary industry of cross-border settlements. BOC senior deputy governor Carolyn Wilkins remarked on the merits of a robust settlement system, stating, “A better settlement process would not only reduce the cost of securities transactions, but also support financial system resiliency, especially in periods of stress, through faster settlement times and reduced settlement risk.”