Digital currency for interbank settlements in Thailand
New Delhi: WiproNSE -0.26 percent Tuesday said it has developed a blockchain-based alternative model, in partnership with business applications company R3, which will power digital money trades for banks in Thailand.
The model intends to allow digital money for interbank settlements to get a consortium comprising the Bank of Thailand and eight commercial banks in Thailand, Wipro said in a regulatory filing.
“Developed as part of this initial phase of Job lnthanon, the alternative will empower de-centralised interbank real time gross settlement (RTGS) utilizing wholesale Central Bank Digital Currency to show that the technology may execute crucial functionalities of payment and improve efficacy,” it added.
“Produced as part of this initial phase of Job lnthanon, the alternative will empower de-centralised interbank real time gross settlement (RTGS) utilizing wholesale Central Bank Digital Currency to show that the technology could execute crucial functionalities of payment and also improve efficacy,” it added.
Job lnthanon is an initiative directed by the Bank of Thailand, in partnership with eight participating banks. The project attempts to boost the technical readiness of Thailand’s financial industry for adopting new technologies and digitalisation.
Launched in August 2018, the initial stage of the project centered on constructing the basic payment infrastructure, although the use of blockchain technologies for some other functionalities will probably be explored in the following stages.
“Constructing a blockchain model for issuing digital money contrasts with our vision of forcing business transformation through real-world software of blockchain,” Wipro Vice-President and Blockchain Theme Leader Krishnakumar N Menon stated.Also read: What is Cryptocurrency?
What is Digital currency
Digital money is a payment system that exists only in digital form and isn’t tangible. Digital currency could be moved between users or entities with the assistance of technology such as smartphones, computers and the world wide web.
Even though it’s comparable to bodily monies, electronic currency enables borderless transfer of possession in addition to instantaneous transactions. Digital monies may be used to buy products and services but may also be limited to specific online communities like a gambling or social websites. Digital money is also referred to as digital currency and cybercash.
What is Blockchain Technology
A Blockchain is an increasing list of documents, known as cubes , which can be connected with all cryptography. Each block includes a cryptographic hash of the prior block a timestamp, and trade information (usually represented as a Merkle tree).
By design, a blockchain is resistant to alteration of the information. It’s”an open, distributed ledger that may capture transactions between two parties economically and at a permanent way
“The blockchain is an incorruptible digital ledger of financial transactions which may be programmed to document not merely financial trades but virtually all value.”
A blockchain is, in the simplest of terms, a time-stamped collection of immutable record of information which is handled by bunch of servers not owned by any single thing. Each one of those blocks of information (i.e. block) are procured and bound to each other utilizing cryptographic fundamentals chain. Thus, what’s so particular about it and why are we all stating that it’s business disrupting capabilities?
The blockchain system has no central power — it’s the definition of a democratized system. As it’s a shared and immutable ledger, the info in it’s available for anyone and everyone to see. Hence, anything that’s developed on the blockchain is by its nature transparent and everybody involved is answerable for their activities.