The Bank for International Settlements (BIS) Innovation Hub and Bank Indonesia under the Indonesian G20 Presidency announced the winners of their jointly organized G20 TechSprint competition last week during a live award ceremony in Jakarta. This third edition of the TechSprint aims to catalyze the development of central bank digital currency (CBDC). Twenty-one finalists from more than 100 applicants worldwide developed and submitted innovative best-in-class CBDC solutions.
Dragonfly Fintech Pte. Ltd. a company offering customizable blockchain-powered fintech solutions from Singapore, won the coveted “Effective and robust means to issue, distribute and transfer CBDCs” category ahead of about 100 participants globally, including some Fortune 500 companies. The other finalists for this category included BitMint, FIS, Mastercard Asia Pacific, R3, Ripple, Roxe CBDC, S.e.A.(Stellar, eCurrency and ANZ).
Other competition categories were “Enabling Financial Inclusion and “Improving Interoperability.” Eleven global expert judges conducted rigorous evaluation and scoring to decide the winners.
With the announcement of this year’s winners, Cecilia Skingsley, Head of the BIS Innovation Hub, said:
“This TechSprint has allowed us to improve our practical work on CBDCs. These technological solutions add to the central banks’ toolbox and provide a springboard for the further development of CBDCs. Our heartiest congratulations to the winning teams.”
Dragonfly’s winning production-ready solution showcased an effective and robust means for the issuance, distribution, and transfer of CBDC for wholesale and retail usage. The submitted solution included the following:
- nCore: Dragonfly’s proprietary blockchain infrastructure, designed for digital banking, enabling regulatory compliance, privacy and control, direct correspondent banking, and interoperability with legacy systems.
- Central Bank Solution: Integrated with an independent central bank-controlled network, a central bank can securely issue and distribute CBDC, execute monetary policy, and have complete oversight over CBDC in circulation. Onboarded financial institutions (FIs) can leverage the network to settle multi-currency transfers.
- mWallet: Integrated with an independently controlled FI network, Dragonfly’s mobile banking solution comes with a modularized backend operating management system that can quickly scale into a full-fledged digital bank.
Dragonfly followed key design principles to make CBDC SIMPLE, with its solution being:
- Scalable: The distributed multi-network design can quickly scale to serve a national CBDC rollout and facilitate cross-border payments.
- Interoperable: Operators can integrate with existing core banking ledgers and external payment and settlement rails.
- Modular: New digital banking modules can easily be plugged in using APIs and SDKs available in multiple common coding languages.
- Programmable: High programmability facilitates the design of innovative services, giving operators a competitive edge.
- Layered: The solution is a ready-to-use stack of future-proof layer one and two technologies.
- Extensible: A multi-touchpoint experience with dual offline capabilities that can serve the unbanked.
Dragonfly’s founder and CEO, Lon Wong, gave his thoughts on the optimal implementation for CBDC:
“For any country to embark on CBDC, I believe an implementation must be able to converge with the existing web of legacy financial systems. The financial burden for a significant CBDC rollout, especially for a vast and spaced-out archipelago like Indonesia, should be minimized through distributed and decentralized technology, preferably in a cloud environment, enabling the lowest possible cost of ownership with no single point of failure.”
Board member and advisor of Dragonfly, Jeswant Gill, outlined next-steps for the company:
“Our avant-garde platform infrastructure allows us to continue building more plug-ins, features, and functions. The modular design facilitates continuous innovation enabling our solution to advance and mature at an accelerated pace, staying the course as a market leader. A key focus moving forward is to engage and collaborate with the Indonesian government to pilot our CBDC solution.”
Winning this challenge serves as an affirmation that cutting-edge technology can be implemented cost-effectively. Dragonfly is inspired to bring its practical solution to emerging economies globally.