Wipro, R3 Build Blockchain Solution Prototype For Bank Of Thailand’s CBDC Project

Blockchain, News | May 8, 2019 By:

Indian IT solutions company Wipro Limited, in partnership with enterprise blockchain software firm R3, has developed a blockchain solution prototype to enable digital currency for interbank settlements in Thailand.

Wipro is a global information technology, consulting and business process services company. Its services encompass a number of areas, including software architecture, business intelligence systems, e-commerce, data warehousing, Internet access devices, network management, system administration, messaging systems, IT consulting and design. Wipro’s thought-to-finish blockchain offerings cover advisory and consulting, Blockchain Innovation Lab (as a service), blockchain application development and constructing blockchain networks. The company helps clients experiment, deploy proof-of-concepts on blockchain technologies, and incrementally expand to scale-to-production releases.

The blockchain solution prototype, developed on R3’s open source Corda blockchain platform, is part of the first phase of Project Inthanon, a collaborative project led by the Bank of Thailand (BoT), in partnership with eight commercial banks, that will use blockchain technology to design and develop a proof-of-concept (PoC) prototype for wholesale funds transfer by issuing a wholesale Central Bank Digital Currency (CBDC). 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.

The solution will reportedly enable de-centralized interbank real-time gross settlement (RTGS) using wholesale CBDC to prove that the technology can perform key functionalities of payment and enhance efficiency. It automates the banks’ liquidity provision for resolving payment deadlocks through Liquidity Saving Mechanisms (LSM).

“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,” said David E. Rutter, CEO of R3. “R3’s Corda was conceptualized 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.”

According to the firms, the blockchain solution prototype has successfully demonstrated that DLT can significantly enhance payment efficiency by enabling 24/7 interbank settlements.

“We are delighted to have worked on Project Inthanon with R3 and be a part of a national-level fintech initiative,” said Krishnakumar N Menon, Vice President and Blockchain Theme Leader, Wipro Limited. “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.”