By doing so, the bank will allow a regulated usage of a cryptocurrency and hence do away with the use of formal financial institutions to send and receive money. This recent signing of an agreement between themselves and the Japanese financial technology firm Soramitsu Co. will allow them to research the implications and implementation of a blockchain-based software (Hyperledger Iroha). This is a product backed by the US-based Linux Foundation.
Blockchain is a distributed ledger which allows for the use of digital currencies, as in bitcoin for example. It safeguards the transmission of digital assets and currencies by providing better verification techniques. The claim is that through its creation of a shared ledger which is recorded by both individuals and institutions who access the network, it is more adept at the prevention of cyberattacks.
This makes NBC part of the swelling tide of countries that are researching the technology.