Woori Bank will conduct a second overseas remittance test using the blockchain technology of Ripple, an American start-up company. In this experiment, Woori Bank used the blockchain technology with three Japanese banks to conduct overseas remittances and confirms whether the transactions were conducted correctly.
A Woori Bank official said,
We conducted the 2nd test of the overseas remittance on the afternoon of the previous day.
We plan to finalize the test on the 31st after having a technical workshop on 25-26th. ” Woori Bank announced in December that it would cooperate with SBI Ripple Asia of Japan SBI Holdings and carry out the test of the interlocking technology of Ripple’s blockchain.
The overseas remittance technology that Woori Bank is testing is applying Ripple’s block-chain-based technology, and the virtual currency ‘ripple’ is not used for overseas remittances. Overseas remittances using Ripple’s blockchain technology are more cost and time efficient than existing international remittances using the SWIFT network.
The existing overseas remittance system consists of a remittance bank, an intermediary bank, and a receiving bank. The intermediary bank confirms the remittance information sent by the remittance bank and delivers it to the receiving bank. At this time, as the person proceeds to confirm the remittance information, it takes a lot of time and money for the commission fee.
On the other hand, overseas remittances through block-chain technology have no commission fees and theoretically can be done within minutes. This is because the distributed information technology that all the participating members of the network share transaction information between the parties allow the sender and the depositor to share information in real time. It is also a strong point of security because it is difficult to duplicate or hack it because everyone shares transaction information.
Even if the test is completed, it will take time for our bank to apply it to overseas remittances. Woori Bank’s position is that it takes at least five to six months to make a policy decision based on the evaluation of related departments according to the test results.
A Woori bank official said, “After the test is over, we will hear the feedback from related departments such as technology and foreign exchange and make a final decision so that policy decisions will be made by the end of the first half of this year. “It will be at the end of the year that blockchain technology is applied to overseas remittances because of the process.”