DCV together with the Central Bank of Chile, venture into Blockchain technology
The Depósito Central de Valores (DCV) together with the Central Bank of Chile (BC) decided to venture into new technologies. It regards an agreement through which both entities have decided to explore the alternative of advancing in the development of digital assets. The preceding, considering the issuance, administration and repurchase stages using DLT technology, “Distributed Ledger Technology”, typically known as Blockchain.
“We are advancing in a study that allows reviewing the issuance of these assets by the BC in terms of its feasibility under this new technology. It relates to a change in the paradigm, with respect to the traditional ways of issuing assets. Thus it will allow exploration of an alternative that takes advantage of blockchain technology and enables carrying out the process in a more flexible, agile, efficient and secure way”, explained Javier Jara, Commercial and New Businesses Manager, who leads this process on behalf of DCV. Thus, with this joint work it is expected to model a new process that benefits from the blockchain advantages.
Both entities seek to demonstrate that this technology is applicable and that it effectively helps to reduce risks and improve the issuance of instruments.
The project began to take shape during the past year and for a month now both DCV and the BC have been working by carrying out a survey of the flows and a study of the business model. This work is expected to conclude with a conceptual survey that allows for the design of a theoretical solution to identify a possible model that could replace the current one. Likewise, generating a conceptual validation of that design in a PoC (proof of concept).
The complete project contemplates a period of no more than 6 months of work following which to see the feasibility and convenience of advancing to a next stage as determined by both institutions. “It is an important project and reaffirms the relationship between DCV and the BC in the search to modernize services for the securities market, taking advantage of new technologies,” Javier Jara added.
The decision of DCV to address the work and study of blockchain is part of the innovation process that the Company is living.