Sweden and Canada are both set to adopt Blockchain, the underlying technology supporting the digital currency bitcoin, into their banking systems, but with different goals.
Blockchain's distributed-ledger system allows users to conduct secure transactions without the need for middlemen or central oversight, unlike traditional electronic fund transfers.
Bank of Canada has been working with commercial banks to build an experimental interbank payment system.
Details were revealed at a payment-technology event in Calgary on Wednesday that was closed to media, according to an article published by Reuters.
Kyle Kemper, an entrepreneur and head of the Bitcoin Alliance of Canada, said the experiment is called "Project Jasper."
These ventures, however, are not aimed at developing central-bank issued e-money‎ for public use, clarified Bank of Canada Senior Deputy Governor Carolyn Wilkin.
A slide from a presentation at the event seen by Reuters details how the banks in the experiment would pledge cash collateral in a pool that the Bank of Canada would convert into a digital version.
The digital currency would then be used as a medium of exchange and could be converted back to cash.
R3, a New York-based research consortium that includes all of Canada's major banks, is a partner in the Bank of Canada's project, along with Payments Canada.
Sweden on the other hand is attempting to adapt it into their land registry system with the aim of creating permanent, public "ledgers" of all transactions that could potentially replace complicated systems such as clearing and settlement with one simple database.
The Scandinavian country is working on the project with Swedish Blockchain company ChromaWay, consulting firm Kairos Future, and telecommunications service provider Telia, according to another report by Reuters.
"In the first phase of the technology, we have tested the process with some banks," Magnus Kempe, director of retail and finance at Kairos Future, reportedly told Reuters.
Kempe believes the project could go live in the fall this year and will save months of time once its complete.
The plan is to put real estate transactions on Blockchain once the buyer and seller have agreed on a contract deal.
From there all the parties involved in the transactions -- the banks, the government, brokers, buyers, and sellers -- are able to track the progress of the deal once it is completed.
Apart from aiding security, digital documentation will also be able to assign pending title deed said Mats Snäll, head of development of real estate registration, at the Swedish Land Registry.
"Everyone will benefit from this," he added.
