According to a press release published on November 20, SWIFT India, and Fintench firm MonetaGo have signed a strategic partnership for a pilot program that is aimed at improving security and efficiency of financial-based products using decentralized ledger technologies.
SWIFT India was co-founded by Society for Worldwide Interbank Financial Telecommunication (SWIFT) and India-based financial institutions including the Bank of India, HDFC Bank, Bank of Baroda, Axis Bank, Canara Bank, Punjab National Bank, Standard Chartered Bank, and Union Bank of India. The company focuses on providing messaging services to local corporates, banks, and market infrastructures.
As stated by the press release, the new product is built on top of the MonetaGo platform but will be integrated into SWIFT.
Banks will deploy a public blockchain that adheres to the data and security requirements and industry –level governance. As a result, this will enhance the security and efficiencies of financial procedures and products.
The Chief Executive Officer of SWIFT Kiran Shetty stressed that MonetaGO would focus on providing fraud mitigation solutions while SWIFT will ensure the digitization of trade processes. CEO of MonetaGo Jesse Chenard also 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.”
In August, an Indian news outlet reported that the central bank of India was studying cryptocurrency and the technology that underpins it. It tasked a panel to research on the new technology and suggests draft regulations for the industry. The committee will find out what aspects of the blockchain “can be adopted and what cannot.”
The announcement of the partnership between SWIFT and MonetaGo comes as bitcoin and other digital currencies remain illegal the Asian country. A few months ago, the Reserve Bank of India (RBI) banned the use of cryptocurrencies in the country. RBI warned banks against providing services to people and businesses dealing with cryptocurrencies.