Emirates Islamic is reportedly planning on using a combination of QR codes and blockchain technology to enhance protection from fraud of paper checks.
According to a report, Emirates Islamic plans to issue new check books, dubbed Cheque Chain, that include a unique QR code on each page as well as a string of 20 characters that are random. The report noted the move comes after a pilot by parent company Emirates NBD in which employees of the bank used the checks with the QR codes. They are designed to make it harder for forgery, noted the report.
“Blockchain has the potential to significantly increase security and protection in banking transactions, and we are delighted to be among the first in the UAE to utilise this new technology,” says Suhail Bin Tarraf, chief operating officer, Emirates Islamic in the report. “We anticipate that Cheque Chain will dramatically reduce cheque frauds in this market, helping us provide our customers greater peace of mind and security.”
In the next part of the project, the bank will have each cheque page registered on a blockchain platform, which its in-house can use to authenticate the validity of the cheque at the source, according to the report.
Financial firms are increasingly turning to blockchain to enable secure, digital payment transactions. It’s prompting investments in a lot of startups in the space. Case in point: last week Stratumn, the blockchain startup, raised €7 million in a new round of venture funding. According to a report, the Series A funding round was led by CNP Ventures with participation from Nasdaq, Digital Currency Group and Otium Venture. More than a year ago, the startup raised €600k in seed funding, noted the report. The venture capital funds are going to help the company expand into the U.S. Stratumn is based in Paris and offers a platform for the development of enterprise-type blockchain applications.