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SWIFT India partners with MonetaGo to Pilot Newly Designed DLT Network

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On November 20th, SWIFT India partnered with fintech firm MonetaGo to test the DLT network designed to improve the efficiency and security of financial products.

Established by SWIFT SCRL(Society for Worldwide Interbank Financial Telecommunication) and other local Indian and International banks like HDFC and BOI, SWIFT India is a joint venture which aims to build a secure and standardized messaging system for digitizing the financial ecosystem in India.
As per reports, many Blockchain based companies had been declaring a war on SWIFT, with Ripple and Stellar being the major ones. Both of them planned to overtake SWIFT in the long run by bettering the services provided by it. This partnership is hence seen as an opportunity to maintain its lead in the market.

Jesse Chenard, CEO of MonetaGo said: "Given India's focus on a digital infrastructure which is supported by both policy and technological innovation, it makes sense that large institutional players are interested in these products and initiatives".

The purpose of all the participants has been defined- the banks will deploy a shared distributed ledger network that is made up of security and data privacy requirements that meet industry standards. Simultaneously, MonetaGo will help in fraud reduction and help check the authenticity of electronic waybills and avoid double-financing. An electronic waybill is purportedly generated for the transportation of more than 50,000 rupees. The CEO of SWIFT India, Kiran Shetty, said that this move will digitize trade processes.
Jesse Chenard, CEO of MonetaGo said: "Given India's focus on a digital infrastructure which is supported by both policy and technological innovation, it makes sense that large institutional players are interested in these products and initiatives".

A MoU regarding collaborative research on Blockchain technology was approved by the Union Cabinet of India in September. With the objective of educating the public on distributed ledger technology and offering clarity on how this can be applied to boost operational efficiency, the research was set to be jointly conducted by interested banks.
In August, India's central bank revealed its intention of exploring cryptocurrencies and allegedly launched a dedicated unit for understanding cryptocurrencies and the underlying Blockchain technology to see "what can be adopted and what cannot".

Damien Vanderveken, the head of R&D at SWIFT said: "The proof-of-concept was successful. It showed how efficient decentralized technology can be in fixing many problems. It also shows how much progress has been made in Blockchain technology."

Not being its first time, SWIFT had shown interest in blockchain earlier as well and published a report about how a decentralized proof-of-concept can be used to reconcile Nostro Accounts. The importance of Blockchain was established in the results for account reconciliation. Damien Vanderveken, the head of R&D at SWIFT said: "The proof-of-concept was successful. It showed how efficient decentralized technology can be in fixing many problems. It also shows how much progress has been made in Blockchain technology."

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