Banca Sella and Milano Hub Begin Testing Stablecoins for Faster, More Convenient, and Secure Payments

Banca Sella collaborates with Milano Hub to explore stablecoin use in payments, optimizing costs and enhancing transactions through smart contracts.

Aug 4, 2023 - 13:05
Oct 19, 2023 - 13:06
Banca Sella and Milano Hub Begin Testing Stablecoins for Faster, More Convenient, and Secure Payments
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Banca Sella is working with Milano Hub, an innovative arm of the Bank of Italy, to study how stablecoins can be used in payments. The primary focus is to analyze and test the technological framework required for issuing a token and to understand its implications.

"We aim to introduce cutting-edge solutions, offering a payment experience that is faster, more convenient, and secure," stated Andrea Tessera, Chief Innovation Officer of Banca Sella. "Our goal is to optimize costs, streamline processes, and enhance transactions through the use of smart contracts and the programmability of tokens."

Among the use cases being explored is an escrow account service, which leverages smart contracts to automate operations related to any commercial contract. "This allows us to improve efficiency and reduce manual tasks, ensuring timely and secure payments," Tessera emphasized. "The application of DLT (Distributed Ledger Technology) to token issuance and escrow accounts brings numerous benefits." One of the most significant advantages is eliminating manual operations, which reduces costs and inefficiencies, simplifying the entire payment process.

The Sella team has also been keenly focused on legal and regulatory aspects and technological ones. This comprehensive approach has enabled the bank to internally assess the feasibility of the use cases, ensuring a higher degree of certainty in implementation. This is especially noteworthy given that the team encompasses all initiative stages, with expertise in commercial law and, most importantly, cybersecurity.

The development team from Centrico is also participating in the project, particularly concerning the facets of DLT. With their expertise, the bank believes they are well-positioned to distinguish themselves in banking and financial innovation.