Bank of Canada and R3 reveal detailed findings of blockchain experiment

Launched in 2016, the project is called Jasper and aims to test the use of blockchain for domestic interbank payments settlement. Since then, two phases of exploration into the use of the technology for wholesale interbank - or high-value / wholesale - payments settlement have been successfully completed.

The results of the collaborative effort are outlined in a whitepaper, which details on the proof-of-concept distributed ledger design and key lessons learned, including:

• Clearer understanding of the capabilities of distributed ledger technology platforms: The participants experimented with Ethereum and R3’s Corda for a deeper understanding of the strengths and weaknesses of each platform.

• Feasibility of applying Liquidity Savings Mechanisms on a distributed ledger platform: This achievement represented a major innovation in thinking about how to enable an inherently centralized process on a decentralized distributed ledger technology platform.

• The value of collaboration among Canadian industry members: The financial services environment in Canada is highly concentrated, which presents great opportunities for public-private collaboration on projects that benefit all participants and Canadians generally. This includes Payments Canada’s ongoing work to modernize the Canadian payments system overall.

• Many opportunities for further exploration: While the project demonstrated the ability to settle wholesale payments on a distributed ledger, the technology is not yet ready to underpin a domestic payments system. This work presents many opportunities for further research and exploration, including the possible integration between Project Jasper and other types of distributed ledger-based financial market infrastructures.

The whitepaper, A Canadian Experiment with Distributed Ledger Technology for Domestic Interbank Payments Settlement is available on payments.ca.