5 banks of the southern island of Mindanao joined the blockchain project of the United Bank of Philippines (UBOP) and the start-up ConsenSys.
The bank works with the American software developer ConsenSys, founded by the co-founder of Ethereum Joseph Lyubin. The main objective of the i2i project is to assist local financial institutions in the integration of Ethereum and the blockchain system.
The economic climate of the country
The Philippines has a unique financial infrastructure, and banks know that only people with high salaries can afford banking services. The vast majority of residents and companies rely on local money transfer networks.
The main reason for such a complex relationship with the banking system is the basic balance. For example, the United Bank requires its customers to keep at least $ 2,000 as a default balance. Otherwise, they are fined.
“Our appetite for experimentation warms the country for significant changes for the next generation,” said Alai Garcia, ConsenSys representative in the Asia-Pacific region.
However, the creator of Ethereum, Vitalik Buterin, noted that the overhead of using the supercomputer of this crypto currency will lead to an increase in overhead costs of $ 1 million.
Cantilan Bank, Inc. of Surigao del Sur, FairBank, City Savings Bank and many others has already become a confirmed partners in the venture.