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Indian IT giant Wipro, in collaboration with blockchain startup R3, has developed a blockchain-based solution prototype to enable digital currency for interbank settlements in Thailand.
The prototype has been developed as part of the first phase of Project Inthanon – a central bank digital currency (CBDC)-focused initiative led by the Bank of Thailand (BoT) in collaboration with eight commercial banks.
First announced in June 2018, Project Inthanon aims to leverage blockchain technology to build a proof-of-concept prototype which will enable domestic fund transfers within the country’s interbanking system by issuing CBDC tokens.
The first phase was launched in August 2018 with the objective of building the fundamental payment infrastructure and plans to explore the application of blockchain technology for other functionalities in the subsequent phases.
According to the official release, the solution, built on R3’s Corda blockchain platform, will 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.
“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,” it added.
Earlier this year, the BoT announced the outcome of the first phase of Project Inthanon, saying:
“The results of Project Inthanon Phase I indicated that DLT can fulfil basic payment functionalities. In addition, the technology demonstrated capabilities to help enhance payment efficiency and to support interbank transfer and settlement during off-hours.”
