R3, India’s Tech Giant Builds Blockchain Powered Prototype for Digital Currency in Thailand

In collaboration with Blockchain consortium R3, Indian IT company Wipro has built the prototype of a blockchain-powered system that will enable the use of digital currency for interbank settlements in Thailand.

Wipro said in a statutory filing that the model intends to facilitate interbank transactions for an association made up of the Bank of Thailand and eight commercial banks in Thailand.

The press release describes that the system will be utilized by the country’s central bank, Bank of Thailand (BoT), and eight local commercial banks to facilitate decentralized interbank real-time gross settlement using central bank digital currency (CBDC).

Commenting on the blockchain project, Wipro Vice-President and Blockchain Theme leader Krishnakumar N Menon said “Building a blockchain prototype for issuing digital currency aligns with our vision of driving industry transformation through real-world applications of blockchain.”

Created as part of Project Inthanon’s first stage, the system will allow de-centralized interbank real-time gross settlement (RTGS) using wholesale Central Bank Digital Currency (CBDC) to demonstrate that technology can deliver important payment functionalities and improve effectiveness, it said.

Bank of Thailand introduced Project Inthanon in August 2018 with eight partnering banks To adopt fresh innovations and digitalization, the initiative seeks to enhance technological readiness of Thailand’s economic status. The solution is built on open source blockchain platform Corda developed by enterprise technology firm R3.

The scheme aims to increase Thailand’s financial sector’s technological prowess by adopting unique tech and digitalization. The BoT disclosed plans to develop a wholesale alternative of a CBDC that confines its use to financial organizations and markets, as compared to a CBDC that the public in general can utilize.

BoT’s governor had earlier stated it would take three to five years for international jurisdictions to switch from fiat cash to digital currencies. Recently, Siam Commercial Bank, Thailand’s biggest business bank, effectively finished a blockchain trial for cross-border business-to-business transfers along with PTT Exploration and Production Public Company Limited, a state oil firm.

Notably, Thai Securities and Exchange Commission Deputy Secretary-General Tipsuda Thavaramara indicated that the recently established state legislation enables the issuance of digital stocks and tokenized securities.