R3 and Wipro to Power Thailand’s Digital Currency, Project Inthathonby Fintechnews Singapore May 8, 2019
In what seems to be a streak of nations embracing central bank backed digital currencies (CDBC) and Wholesale CDBCs, Wipro announced today that in partnership with R3 they have developed a blockchain-based solution prototype for a consortium consisting of the Bank of Thailand and eight commercial banks in Thailand.
It is developed as part of the first phase of Project Inthanon and Bank of Thailand led project, the prototype is built on Corda, R3’s open source blockchain platform, for the consortium.
The solution will enable decentralized interbank real-time gross settlement (RTGS) using wholesale Central Bank Digital Currency (CBDC) to prove that the technology can perform key functionalities of payment and enhance efficiency.
Launched in August 2018, the first phase of the project focused on building the fundamental payment infrastructure, while the application of blockchain technology for other functionalities will be explored in the subsequent phases. T
The solution automates the banks’ liquidity provision for resolving payment deadlocks through Liquidity Saving Mechanisms (LSM). The prototype has successfully demonstrated that DLT can significantly enhance payment efficiency by enabling 24/7 interbank settlements.
David E. Rutter, CEO of R3 said,
“Blockchain development is in a truly exciting phase given how more and more financial institutions are recognizing its potential to enable national digital currencies or CBDCs. R3’s Corda was conceptualised to support CBDCs, which made it a perfect fit for Project Inthanon. Both Wipro’s expertise in blockchain technology and understanding of the financial sector, as well as excellent advisory and implementation services, have played an integral role in co-developing the solution prototype.”
Krishnakumar N Menon, Vice President and Blockchain Theme Leader, Wipro Limited said,
“We are delighted to have worked on Project Inthanon with R3 and be a part of a national-level fintech initiative. The DLT-powered solution prototype has demonstrated the merits of blockchain technology adoption for making interbank payments more efficient. Building a blockchain prototype for issuing digital currency aligns with our vision of driving industry transformation through real-world applications of blockchain.”
More info on the complete findings from the Phase of Project Inthanon can be found here
Image Credit: National News Bureau of Thailand