Wipro has partnered with enterprise specialist R3 to develop a blockchain-based solution prototype to enable digital currency for interbank settlements for a consortium consisting of the Bank of Thailand and eight commercial banks in Thailand.
Developed as part of the first phase of Project Inthanon, the solution is designed to enable de-centralised interbank real-time gross settlement using wholesale Central Bank Digital Currency (CBDC).
Consequently, the aim is to prove that the technology can perform “key functionalities of payment and enhance efficiency”.
Project Inthanon is an initiative led by the Bank of Thailand, in partnership with eight participating banks in a collaborative project that will use blockchain technology to build a proof-of-concept prototype which will enable domestic fund transfers within the country’s inter-banking system by issuing CBDC tokens.
In short, the project seeks to enhance the technological preparedness of Thailand’s financial sector.
“We are delighted to have worked on Project Inthanon with R3 and be a part of a national-level fintech initiative,” said Krishnakumar Menon, vice president and theme leader of blockchain at Wipro. “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.”
As part of the Phase I of Project Inthanon, Wipro and R3 have co-developed a blockchain solution prototype on Corda, R3’s open source blockchain platform, for the consortium.
The solution aims to automate the banks’ liquidity provision for resolving payment deadlocks through Liquidity Saving Mechanisms.
According to both parties, the prototype has “successfully demonstrated” that DLT can “significantly enhance” payment efficiency by enabling 24/7 interbank settlements.
“Blockchain development is in a truly exciting phase given how more and more financial institutions are recognising its potential to enable national digital currencies or CBDCs,” added David Rutter, CEO of R3. “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.”