The Islamic Bank of the United Arab Emirates (a subsidiary of Dubai’s largest banking group NBD) has integrated checks with blockchain technology as a means of preventing fraud.
According to CCN, the first phase of the project began in early May, entitled “The start of an amazing NBD strategy to tie blockchain to existing products and services.” In this phase, unique QR codes are displayed on each checkbook sheet empowered with blockchain. Each QR code records each check on the bank blockchain, which helps to verify the validity of the check at any time. NBD has started issuing new checks to its employees in the pilot phase.
The bank recently announced that it will begin issuing new QR checks to its customers in a single string with 20 random characters.
“Blockchain has the potential to dramatically increase security and protection in banking transactions,” said Soheil bin Traf, the bank’s CEO. “The Czech chain is expected to greatly reduce check fraud in this market and help our customers feel calmer and more secure.”
The next steps in blockchain technology are not yet known, but the next step in the check chain is for the bank to register each check on the blockchain platform to verify the validity of the check at its source.
A similar effort took place in Singapore, where Japan’s largest bank, MUFG, used FinTech Singapore to issue, transfer and collect electronic checks on blockchain through Sandbox regulator as a way to digitize the traditional paper processing process.
Source : Iran Blockchaink Laboratory