Blockchain and smart contracts are powerful technologies. Even in the finance sector, they can make a meaningful impact. Several Spanish banks are now testing programmable payments for smart contracts.
This proof-of-concept test could send a clear message to the finance industry. If successful, the interbank Smart Payments Platform will gain a lot of attention. For now, it remains a joint venture between five major Spanish banks.
That collective consists of BBVA, CaixaBank, Bankia, Banco Santander, and Banco Sabadell. All of these institutions have experimented with blockchain in the past. Exploring smart contract functionality is a logical next step.
Ultimately, the goal is to improve upon instant credit transfers. Using smart contracts in a blockchain environment can make this process cheaper and more efficient. Programmable payments have been of great interest to numerous developers.
This entire initiative is overseen by Iberpay. That company manages the Spanish payment System. They see merit in programmable payments. Such a solution can apply to delivery of goods or signing a contract, for example.
As part of the test, a pilot project will be created. All participants will run six distributed nodes. It is believed this trial will last for six months, and is made possible with the help of Grant Thornton.