India’s big banks plan interbank blockchain platform

India’s largest banks are building a consortium to test an interbank blockchain platform, putting the country at the cutting edge of adoption of the technology that forms the backbone of cryptocurrency Bitcoin.

The move comes after the central bank’s technology arm the Institute for Development and Research in Banking Technology (IDRBT) released a white paper earlier this month saying its pilot, for a blockchain platform to settle trade finance transactions, had been successful.

The banks involved in the larger pilot, including State Bank of India are working with New York-based startup MonetaGo, which will provide the platform. MonetaGo was also the technology provider in IDRBT’s pilot.

“We are going to be starting a pilot with about 15 of India’s largest banks to test out the platform. The banks have been working on their own blockchain pilots. But this will create a platform that everyone will build on,”

Jesse Chenar d, CEO of MonetaGo, told ET. He declined to name all the members in the consortium, saying there would be a larger announcement when the pilot officially started. However, he said that the banks involved were responsible for over 80% of all transactions in the country.

Blockchain — which uses a distributed system for recording transactions called hyperledger — would help allow the banks to settle transactions more efficiently.

Read more at the website of the India Times