►
From YouTube: Lessons Learned Launching Bakong, a Hyperledger Iroha-based "synthetic CBDC" - James Edwards
Description
Lessons Learned Launching Bakong, a Hyperledger Iroha-based "synthetic CBDC" - James Edwards, Soramitsu Helvetia AG
Dr. Edwards will address challenges and opportunities facing Bakong, a "synthetic CBDC" built by Soramitsu and the National Bank of Cambodia with Hyperledger Iroha at its core. Bakong utilises a two-tier architecture in which digital currency is created and transactions are written on a ledger maintained by the central bank, while KYC and retail account management are handled by commercial bank partners, taking advantage of Iroha's robust permissions system. This allows Bakong to achieve many benefits of a CBDC without the risk of disintermediation. After reviewing the system's socio-technical context, Dr. Edwards will discuss the task of building a consortium of 21 commercial banks within a fragmented payments ecosystem. He will then introduce next steps for Hyperledger Iroha-based fast payment systems, including a cross-border use-case and some potential features of Iroha v2.
Session Details & Slides (if available)- https://sched.co/j64Y
Access All Sessions: https://events.linuxfoundation.org/hyperledger-global-forum/program/schedule/
----
Hyperledger – Open Source Blockchain Technologies
Hyperledger is an open source community focused on developing a suite of stable frameworks, tools and libraries for enterprise-grade blockchain deployments.
It serves as a neutral home for various distributed ledger frameworks including Hyperledger Besu, Fabric, Sawtooth, Indy, as well as tools like Hyperledger Avalon, Cactus and libraries like Hyperledger Aries, Ursa. Learn more about Hyperledger projects: https://www.hyperledger.org/use
Case Studies: https://www.hyperledger.org/learn/case-studies
Training & Certification: https://www.hyperledger.org/learn/training
Tutorials: https://www.hyperledger.org/use/tutorials
Webinars: https://www.hyperledger.org/learn/webinars
Events: https://www.hyperledger.org/events
Vendor Directory: https://www.hyperledger.org/use/vendor-directory
Subscribe to the Hyperledger Newsletter: https://www.hyperledger.org/newsletter
Follow-us on Twitter @Hyperledger
Learn about Hyperledger Membership: https://www.hyperledger.org/about/join
#Hyperledger #HyperledgerGlobalForum2021 #Blockchain
A
So
we're
quite
pleased
about
that
and
today
I'll
discuss,
oh
well,
first
I'll,
introduce
sorta
mitsu,
then
I'll,
discuss,
distributed,
ledger
technology
in
the
future
of
central
bank
money
and
then
go
into
the
system.
So
why
backgong
in
in
cambodia
and
why
hyperledger
iroha
as
a
basis
for
bakong,
then
I'll
talk
quickly
about
incentivizing
private
sector
cooperation
within
the
cambodian
payments
ecosystem
and
then
give
you
a
preview
of
some
of
the
next
steps
that
we
hope
to
take
as
a
company
and
also
some
of
the
national
bank
of
cambodia's
next
steps.
A
So
sotamitsu
was
founded
in
2016..
We
currently
have
around
100
people
we're
growing
every
day
and
offices
in
five
countries.
We
contributed
hyper
ledger
europa,
along
with
a
few
other
japanese
companies
to
the
hyperledger
project
in
2016.
That
was
our
first
major
project
and
we
actively
maintain
eroha.
In
fact,
currently
we
are
in
the
final
process
of
of
refining
and
testing
iroha
version,
two
2.0,
which
our
ceo
makoto
takamiya
actually
gave
a
talk
about
in
yesterday's
session.
So
maybe
some
of
you
caught
that
talk.
A
If
not,
then
the
presentation
should
be
available.
I'd
encourage
you
to
take
a
look
because
it's
a
it's
a
real
step
forward
from
irohavi
one,
and
I
will
talk
about
a
few
of
the
features
of
v2
at
the
end
of
today's
talk,
but
there's
a
lot
to
learn.
So
our
best
known
project
is
the
payment
system
that
I'll
talk
about
today,
which
we
implemented
for
the
national
bank
of
cambodia.
A
A
So
that's
us
and
we're
we're
turning
five.
This
year
and
in
in
five
years,
we've
designed
quite
a
few
exciting
technologies
and
we
closed
2020
actually
by
winning
a
fintech
and
regtech
global
award
and
open
2020
with
a
japan
financial
innovation
award.
So
we're
quite
happy
about
that.
It
sets
a
good
tone
going
into
2021
and
with
the
second
version
of
iroha
coming
up,
we
expect
a
really
good
year.
So
please
stay
in
touch
and
join
us
and
see
what
the
next
five
years
will
bring.
A
So
what
would
drive
these
normally
quite
reserved
and
prudent
central
bankers
to
make
such
dramatic
statements?
Well,
the
payments
ecosystem
worldwide
is
changing
as
we
see
payment.
This
is
a
mckinsey
global
payments
report
from
2020,
which
indicates
that
payments
companies
outperform
all
other
banking
sectors
in
value
creation
and
the
rate
at
which
they
do
so
has
risen
dramatically
since
around
2016,
when
we
were
founded
actually
fast,
payment
systems
are
becoming
more
widespread
worldwide.
A
A
A
The
central
bank
of
the
eastern
caribbean
currency
union
is
launching
a
cbdc,
and
the
national
bank
of
cambodia's
backgong
system
is
not
technically
classified
as
a
cbdc
for
legal
and
regulatory
reasons
which
I
will
get
into
later,
but
on
a
technical
level
it
does
many
of
the
things
that
the
cbdc
will
also
do
so
yeah.
We
can
see
that
in
2017,
around
66
percent
of
central
banks
were
engaged
in
some
kind
of
work
with
cbdc.
A
A
They
they
were
quite
they
had
quite
a
bit
of
foresight.
They
started
conceptualizing
use
cases
in
2017
and
shows
hyperledger
eroha
as
a
basis
for
a
retail
cbdc,
which
is
again
a
a
digital
currency.
That's
available
available
to
everyday
users,
not
just
financial
institutions,
and
we
very
quickly
developed
a
minimum,
viable
product
and
evaluated
it
by
2019.
A
We
were
ready
to
integrate
the
system
and
proceed
with
a
soft
launch
with
four
participating
financial
institutions
and
their
end
customers
using
real
fiat
backed
digital
cambodian
radio,
which
is
the
local
currency
and
us
dollars
in
q3
2019.
We
soft
launched
nationwide
in
2020
q2.
We
published
our
white
paper,
which
I'll
provide
a
link
to
at
the
end
of
this
presentation
and
our
night,
our
nationwide
launch
went
well.
A
The
central
bank
runs
the
core
ledger:
it's
responsible
for
creating
money
and
is
responsible
for
creating
domains
and
accounts,
whereas
commercial
financial
institutions
maintain
back
on
settlement
accounts
that
are
backed
by
their
central
bank
reserve
accounts.
They
also
run
payment
gateways
which
are
mobile.
Api
servers
and
they're
responsible
for
onboarding
end
users,
conducting
kyc
controlling
end
user,
personal
identifiable
information
and
integrating
with
the
core
banking
system
via
iso
202022,
and
I
don't
really
have
time,
unfortunately,
to
go
into
the
technical
details
of
the
architecture.
A
But
a
lot
of
this
is
available
in
our
white
papers
and
other
literature,
which
I
would
be
happy
to
send
you
a
link
to
so
why
project
bakkong
in
in
the
kingdom
of
cambodia?
Well.
The
first
motivation
was
that
in
2017,
cambodia
suffered
from
very
low
financial
inclusion.
Only
22
percent
of
adults
had
accounts
at
all.
A
Obviously,
it's
difficult
to
collect
taxes,
but
it's
also
difficult
for
this,
these
msmes
to
keep
on
top
of
trends
in
in
in
commerce.
So,
for
instance,
when
tourists
come
to
prom
pen
and
want
to
use
a
digital
payment
app
with
local
merchants,
they
can't
so
they
turn
to
multinationals
instead,
which
cuts
into
the
local
businesses
business
models
so
offering
these
msmes
and
also
everyday
citizens,
some
form
of
accessible
digital
payment,
the
national
bank
decided
would
be
would
provide
a
public
good.
A
A
Because
of
regulatory
issues,
a
payment
service
provider
that
was
not
registered
as
a
bank
did
not
have
access
to
the
settlement
infrastructure.
The
banks
had
access
to
which
led
to
a
proliferation
of
isolated
closed-loop
systems
whose
users
could
not
interact
with
each
other
could
not
transact
with
each
other.
A
There
was
not
a
lot
of
growth
in
the
kind
of
services
that
financial
institutions
were
offering
or
developing,
including
online
banking
offers.
The
the
online
banking
offers
that
were
on
hand
in
2017
in
cambodia
were
pretty
rudimentary.
Other
contextual
factors
were
dollarization
and
a
high
mobile
broadband
penetration,
but
a
low
mobile
money
penetration
in
2017..
A
So
the
nbc
saw
this.
They
saw
that
a
lot
of
cambodians
relatively
had
access
to
mobile
mobile
broadband,
but
that
mobile
money
had
not
yet
made
a
move
into
cambodia
to
the
same
extent
that
it
had
in,
for
example,
east
africa,
and
they
saw
this
as
a
real
opportunity
to
launch
a
system
that
could
change
cambodians
lives
for
the
better.
A
So
why
eroha
number
one
eroja
offers
final,
irrevocable
and
secure
transactions.
It's
a
focused
and
circumscribed
digital
distributed,
ledger
technology
with
byzantine
fault,
tolerant
consensus.
It
doesn't
try
to
be
a
database.
It
doesn't
try
to
be
a
enterprise
management
solution.
It's
a
blockchain,
its
logic
is
b
of
blockchain
and
that
allows
it
to
minimize
attack
vectors
to
to
reduce
the
potential
attack
space,
which
is
important
when
you're
talking
about
creating
a
new
system,
critical
infrastructure
number
two:
it's
modular,
it's
open
source
via
the
hyperledger
project.
A
There
are
sdks
available
in
multiple
languages
and
the
nbc.
The
national
bank
of
cambodia
decided
that
this
would
be
a
benefit
for
them
because
they
wouldn't
be
locked
in
to
working
with
a
particular
company,
necessarily,
although
they
have
been
working
with
us
regularly
and
we
have
a
good
relationship
they
didn't
want
to.
They
didn't
want
to
suffer
from
lock-in
on
critical
financial
infrastructure.
A
It's
very
user
friendly.
It
has
a
simple
command
line
interface
which
looks
like
this,
and
this
is
the
basic
version,
gives
you
a
menu
of
of
transaction
types
that
you
can
choose
from.
I
encourage
you
to
check
out
our
github
and
go
through
the
quick
guide
and
and
try
setting
up
a
hyperledger
node
on
your
on
your
personal
computer.
It's
very
easy
to
do.
A
It's
also
mobile.
First,
it
has
a
functional
and
customizable
end
user,
app
that
we
developed
for
the
national
bank
of
cambodia,
and
here
here
also
you
can
test
out
the
end
user
app.
I
was
going
to
do
that,
but
I
don't
think
I
have
time
so
I'll
just
show
you
a
picture
instead,
a
mock-up,
it's
very
easy
to
use.
A
I'm
sure
that
you've
used
something
similar.
You
can
send
money
to
a
registered
user
via
a
qr
code,
scan
via
inputting
their
phone
number
or
account
number.
You
can
also
display
a
qr
code
that
others
can
scan
and
send
to
you.
Can
deposit
money
to
existing
bank
accounts
either
your
own
bank
account
or
another
person's
bank
account
and
the
qr
functionality
is
particularly
useful
for
medium
for
micro,
small
and
medium
enterprises,
medium-sized
enterprises,
because
it
doesn't
require
any
special
infrastructure.
You
don't
need
a
card
reader.
You
don't
even
need
a
landline.
A
You
can
instantly
accept
and
bank
payments
from
any
other
backhoen
user
without
investing
without
sinking
capital
into
these,
these
payment
service
provider,
specific
infrastructures
that
you
may
or
may
not
actually
end
up
using.
So
it's
a
very
easy
way
to
take
a
step
into
the
world
of
digital
payments
for
msmes
that
don't
have
a
lot
of
capital.
A
A
And,
finally,
it's
context
appropriate.
It
has
a
roles-based
permission
system
which
is
uniquely
suited
to
a
multi-stakeholder
environment
which
allows
clear
rules
for
the
central
bank
and
for
commercial
fis.
It
also
allows
a
segregation
of
data
for
a
balance
of
compliance
versus
privacy,
and
I
wanted
to
show
you
quickly
the
desktop
interface.
A
This
is
the
interface
that
a
financial
institution
would
see
and,
as
you
see
over
here,
there's
a
menu
of
different
kinds
of
operations.
Right
now,
I'm
logged
in
as
an
admin
or
a
manager.
I
could
also
log
in
as
a
as
a
teller
and
then
I
would
have
a
reduced
menu
of
options
and-
and
this
is
easy
to
implement
on
the
front
end,
because
on
the
back
end,
iroha
uses
a
roles-based
permission
system.
A
You
you
create
a
domain
within
that
domain,
you
create
a
number
of
different
roles
and
then
you
assign
permissions
to
each
role,
so
it's
very
well
suited
on
a
backend
level,
on
an
architectural
data
structure
level
to
this
kind
of
use
case-
and
I
was
mentioning
kyc
and
for
instance,
here
you
see
the
kyc
status.
Backgong
has
a
tiered
kyc
system,
so
you
can
open
an
account
with
a
cambodian
cell
phone
number
without
going
through
any
kyc,
but
it
has
a
limit.
A
limited
transaction
of,
I
believe,
250
us
dollars
per
day.
A
A
A
The
transaction
info,
so
here
we
have
the
transaction
hash.
The
creator
id
is
the
the
sender
admin
at
tests,
the
creation
time
the
command
and
the
assets
transferred
from
the
sender
account
admin
and
test
the
the
recipient
account,
which
is
in
this
case
test
that
test
the
asset
id
and
the
description
and
the
amount.
So
this
is
what
the
central
bank
would
see
and
these
ids
are
pseudonymized.
They
don't
have
any
intrinsic
connection
to
the
user's
actual
identity.
A
A
This,
but
they
would
also
see
that
users
kyc
identity
documents
that
they
provided
for
kyc,
so
the
commercial.
So
the
central
bank
has
access
to
all
transaction
records,
but
no
pii.
The
commercial
bank
has
access
to
only
the
transaction
records
of
their
own
user
base,
but
they
also
have
access
to
the
pii.
A
So
there's
a
segregation
of
transaction
data
and
personally
identifiable
information
that
allows
for
a
balance
between
regulatory
compliance
on
the
one
hand
and
privacy
on
the
other
and
using
established
legal
channels.
The
central
bank
could
quite
easily
subhuina
the
pii
of
any
accounts
that
were
found
to
be
engaging
in
illegal
activities.
A
A
A
The
legal
claim
is
mediated
by
users.
Commercial
financial
institutions,
as
I
mentioned
before,
each
financial
institution
maintains
a
bacon
settlement
account
which
is
linked
to
their
central
bank
reserve
account.
So
the
claim
is
mediated
by
the
commercial
bank,
but
the
payments
are
written
in
real
time
on
the
distributed
ledger
maintained
by
the
central
bank,
and
the
benefit
of
this
is
that
you
achieve
the
the
advantage
of
final
and
irrevocable
transactions
with
legal
finality
without
the
the
drawback
of
disintermediation.
A
Because
the
risk
of
disintermediation
here
we
have
some
barriers
for
private
sector
participation.
The
risk
of
disintermediation
has
been
widely
discussed.
If
the
central
bank
begins
to
take
retail
deposits,
then
that
will
mean
that
that
deposits
on
the
commercial
bank's
balance
sheets
drop,
so
that
would
give
commercial
banks
less
money
to
work
with,
which
would
then
in
turn
in
principle
at
least
reduce
their
their
profitability
cut
into
their
business
model
within
dot
gong.
A
There
are
these
clearly
defined
roles
for
the
central
bank
as
the
operator
of
the
ledger
and
commercial
banks
as
the
maintainers
of
accounts
and
in
in
this
way
deposits
remain
on
the
commercial
bank's
balance
sheet,
while
still
maintaining
the
security
of
having
a
central
bank
backing.
In
the
end,
the
the
accounting
model
also
minimizes
the
need
for
regulatory
reform,
because
kyc
remains
with
the
commercial
banks.
It
has
a
very
low
cost
to
adopt
for
private
sector
players.
The
client
module
is
plug
and
play
the
business
processes.
A
Apis
and
gui
are
carried
over
from
or
integrated
with,
the
core
banking
system,
and
it
has
minimal
hardware
or
personnel
requirements
and
a
clear
explanation
of
how
costs
can
be
recouped
and
actually
prior
to
implementing.
We
calculated
the
savings
potential
savings
for
commercial
banks
and
our
modeling
indicated
a
potential
savings
of
around
240
000
us
dollars
per
bank
per
year,
which
is
not
a
lot
of
money
for
a
bank,
but
nevertheless
it
helped
to
assuage
the
fears
of
banks
that
participate
in
in
the
bakkong
system
would
become
a
loss
leader.
A
A
Ninety
percent
of
of
mobile
money
transactions
in
cambodia
or
something
they
have
a
huge
network
of
of
over-the-counter
agents
and
bakong
allows
users
of
commercial
banks
to
take
advantage
of
the
psp's
huge
networks
of
over-the-counter
agents.
So
it
has
made
life
a
lot
more
convenient
for
cambodians
and
for
cambodian
small
businesses,
and
it
has
also
incentivized
psps
to
develop
more
bank-like
services,
a
wider
range
of
services,
and
it
has
incentivized
banks
to
develop
a
wider
range
of
psp-like
services.
A
So
it's
enriching
competition
within
the
cambodian
into
the
cambodian
payments
ecosystem
or
coopetation
to
use
the
buzzword
and
the
director
general
of
the
cambodian
national
bank
states
that,
in
terms
of
us
destroying
the
payment
service
providers,
I
think
by
creating
interoperability
it
shouldn't
destroy
them.
It
should
actually
be
strengthening
them.
A
A
A
A
Talk,
okay,
great
well,
unfortunately,
we're
out
of
time.
I
didn't
get
through
everything
I
wanted
to
time.
Time
flies,
but
hopefully
it
was
informative.
Hopefully
it
gave
you
a
good
sense
of
what
the
system
is
and
what
it
can
do,
and
hopefully
it
set
you
up
to
be
able
to
ask
some
questions.
Personally,
as
I
said,
feel
free
to
email
me
anytime,
and
talk
to
you
soon.
Hopefully,
bye,
bye,.