Emirates Islamic Bank puts Cheques on the Blockchain technology
The UAE’s Emirates Islamic Bank has integrated Blockchain technology based product called “Check Chain” , for its checks system to avoid fraud.
Check Chain is a product built using blockchain technology and has the characterstics of the same.
Emirates Islamic Bank became the first bank in the United Arab Emirates to introduce Blockchaintechnology for checkbooks
“Check Chain” was first announced in May, an initiative highlighted as “the start of a significant strategy of the banks of the United Arab Emirates to integrate Blockchain technology in securing banking transactions”.
The initial phase of the project consists of a unique QR code on each check in order to save them on the Blockchain to validate their authenticity at any time. The bank began by distributing these new check books to its employees to test the system.
This week, UAE’s Emirates Islamic Bank announced the distribution of new “QR Code” check books with a random 20-character code to its customers.
Suhail Bin Tarraf, the head of the bank’s operations said:
“The blockchain has significant potential to increase the security and protection of banking transactions. It is anticipated that “Check Chain” will dramatically reduce fraud and help us provide greater peace of mind to our customers. “
Blockchain Technology being adopted by banks across various countries
This is not the first time that Blockchain technology is being introduced in banking sectors. Countries around the world are researching about implementation of technology in Banking Sector.
An initiative of this type is taking shape in Singapore, where the largest bank in Japan, MUFG, uses a blockchain to publish, transfer and collect E-checks on a platform built on Blockchain technology to digitize the procedure.
Similarly, Banks in India have formed a consortium and developed a product built on Blockchain Technology, called “Bank-Chain”.
The first project named Clear-Chain(c2) under Bank-Chain is a permissioned blockchain platform for integrating and sharing valuable data like :
- KYC (Know Your Client),
- AML (Anti-Money Laundering)
- CFT (Countering the Financing of Terrorism),
- Investigation reports,
- Suspicious transaction reports, and
- Cross border wire transfer reports among the participating banks.
A similar initiative of forming a consortium and integrating the technology was took up by Banks in Spain.
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This article was contributed by author Bhargavi Sayee and modified by author at KryptMoney.com for quality purpose.