The Institute for Development and Research in Banking Technology explores the benefits of blockchain in India’s banking sector and provides an implementation roadmap.
India’s IDRBT (Institute for Development and Research in Banking Technology) has released a blueprint for blockchain technology for the banking sector, following consultation with the government, banks, industry and academia.
The blueprint is organised into three chapters. The first presents the features of current business networks and explores the requirements and benefits of blockchain adoption. In particular, it acknowledges potential benefits in relation to business continuity, business process and messaging guarantees, transaction validation, auto execution of smart contracts, in addition to advantages around the security, privacy, integrity and finality of data.
The second is devoted to architectural, governance and technological design aspects that can help in the successful deployment of blockchain-based services. It showcases three existing realisations of blockchain technology, namely Ethereum, Corda and Hyperledger Fabric.
The third provides an implementation roadmap that ensures common infrastructure and interoperability among different entities. It also describes a mechanism for regulatory supervision of the blockchain ecosystem, which the IRDBT says will contribute to mass adoption of the technology.
The blueprint notes that regulatory permissions would need to be obtained if financial assets such as fiat currencies are being maintained within a blockchain.
“One possibility here would be to consider blockchain ledger only to process transactions while settlements continue through existing mechanisms,” it says. “This would require an interface between blockchain ledger and core banking ledger.”
The IDRBT’s blueprint is available here.