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From YouTube: Project Bakong: Blockchain Solutions in Developing Economies - James Loperfido, Soramitsu
Description
Project Bakong: Blockchain Solutions in Developing Economies - James Loperfido, Soramitsu
James Loperfido, VP of Business Development at Soramitsu, will provide an overview and case study of the company's project with the Central Bank of Cambodia. Soramitsu leveraged its Hyperledger Iroha framework alongside its mobile applications for digital identity, payments, and digital assets to create a retail payment system for the general populous. In a country where 80% of the population is unbanked, widespread adoption of this technology allows for digital representations of the US dollar and Cambodian Riel to enable internet commerce. In addition to being able to purchase products and services through the internet, consumers and local merchants can leverage mobile only technology to exchange value peer-to-peer with very little cost. Application of a digital payments network like project Bakong is estimated to save 1% of GDP annually for developing countries according to research published by the Central Bank of Malaysia. This represents a potential $200 million annual savings. Moreover, a single system tracking the financial transactions within the economy will allow for automated record keeping, embedded audits, and thus allow for a massive shift in tax planning and monetary policy. The application of short-term consumer micro-loans will bring the Cambodian economic infrastructure in line with other developing nations while creating a bridge to the global economy on a grand scale.
The presentation will cover how Soramitsu has leveraged its technology with respect to digital onboarding, payments, and blockchain utility. It will also cover a potential roadmap for growth and continued development of technology and services to create economic efficiency.
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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 #HyperledgerGlobalForum2020 #Blockchain
A
All
right
so
I
get
started
here
guys
good
morning.
My
name
is
James
LaBrie
Fito,
I,
work
on
business,
development
for
a
Japanese,
FinTech
company
called
soar
omitsu
and
today,
I'll
be
talking
to
you
about
our
project
bakong,
which
is
a
central
bank,
digital
currency
and
retail
payment
system
that
we
created
in
conjunction
with
the
National
Bank
of
Cambodia,
which
is
their
central
bank,
quickly,
abouts
or
Mitsu.
Again,
it's
a
Japanese
FinTech
and
blocking
an
engineering
company
founded
in
2016
and
in
Tokyo.
A
Talk
a
little
bit
about
hyper
ledger
Aroha,
as
you
could
see,
it
was
open
source
in
September.
2016
was
accepted
into
the
hyper
ledger
project
around
the
same
time,
but
the
first
outside
the
incubation
stage
when
it
became
recognized
as
a
former
protocol
within
the
green
house.
Again
was
this
past
summer,
it's
known
for
embracing
the
the
Kai's
end
development
principle.
A
If
you
are
familiar
with
Japanese
culture,
simplicity
in
is,
it
is
elegance
and
we
try
to
maintain
a
simple
user
interface
for
both
the
technologists
that
are
developing
on
it
and
anybody
that
would
interact
with
the
applications
that
we
developed
for
our
use
case
partners
and
enterprises.
That
Aroha
is
that
is
the
core
foundation
of.
So
it's
very
simple
and
fast
trying
to
keep
it
very
lean.
A
There's
a
focus
on
creating
libraries
for
mobile
applications
and
really
focusing
on
consumer
adoption
and
making
that
user
experience
as
as
seamless
and
simple
as
possible,
which,
if
people
have
been
following
the
blockchain
space,
we
all
know
it's
been
a
big
hurdle
to
get
applications
out
into
the
public
and
into
the
hands
of
consumers
in
a
practical
way.
So
sorem,
it's
a
really
focuses
on
that
side
of
the
development
through
a
roja.
You
can
see
there's
a
list
of
use
case
partners
here
where
we've
proven
some
concepts
through
pilots
but
as
you'll
see
today.
A
Bakong
is
probably
our
most
valuable
project
in
terms
of
its
development
and
where
we've
taken
it
so
far
and
where
it
could
potentially
go
so
again.
Key
experts,
key
domain
expertise,
creating
infrastructure
through
Aroha,
using
our
role
as
a
foundation
to
create
technology
for
digital
currencies,
assets,
exchange,
settlement
payments
and
safekeeping.
A
A
But
most
importantly,
in
the
case
of
bakong,
where
people
are
using
this
technology
to
interact
and
trade
and
send
money
with
each
other,
the
most
important
thing
is
that
they're
able
to
do
this
by
digital
kyc
and
onboarding.
So
just
through
a
mobile
application,
which
I'll
show
you
a
demo
of
at
the
end
of
the
presentation,
people
are
able
to
register
within
the
system
and
create
a
digital
asset
account
that
they
could
send
and
receive
money
through
without
actually
having
a
bank
account
at
a
physical
branch.
A
So
again,
just
a
little
bit
more
of
a
summary
of
hyper
ledger.
Aroha,
it
uses
C++
as
its
as
its
primary
language
and
focus
which
allows
for
greater
open
source
contribution.
As
you
know,
any
of
the
hyper
ledger
greenhouse
fabrics
are
open
source,
so
enabling
many
people
to
contribute
to
the
underlying
source
code
is
very
important,
is
a
unique
consensus
and
ordering
service
algorithms,
it's
Byzantine
fault,
tolerant,
I'm,
sure
you've
heard
about
the
the
three
generals
problem
in
the
past.
A
Again,
driving
the
the
idea
of
simplicity
home,
it
has
preordained
command
structure
so
that
when
we
work
with
a
partner
like
a
bank,
they
don't
have
to
recreate
a
library
instead
of
instructions
from
scratch.
And
we
have
a
lot
of
predetermined
codes
and
and
and
commands
that
allow
people
to
adapt
or
adopt
the
technology
quickly
and
put
it
to
use.
A
Again,
identity
is
very
important
in
how
we,
you
know
not
only
maintain
privacy
but
make
it
easy
for
the
user
to
engage
with
this
system
and
I'll
just
quickly
talk
about
the
partners
before
I
get
into
the
meat
of
the
presentation
here.
But
we
work
directly
and
we're
solicited
by
the
the
National
Bank
of
Cambodia
to
embed
the
blockchain
base
retail
payment
system
into
their
current
banking
software
and
built
essentially
all
of
the
software
to
integrate
with
the
central
bank's
existing
and
the
commercial
banks.
A
As
well,
existing
infrastructure
I'll
be
partnered
with
Deloitte
on
the
architecture
for
the
for
the
system
itself.
Kpmg
is
an
auditor,
and
a
recent
partner
in
tangent
tangent
creates
a
physical
layer
for
private
key
management
through
very
secure
hardware
and
also
has
other
implications
for
identity
and
pretty
specific
use
cases
so
check.
It
check
them
out
to
see
how
happens
to
be
a
good
friend
sitting
here
in
the
room
with
us.
A
A
A
It
wasn't
until
I
believe
1980
that
the
the
central
bank
was
reestablished
and
after
the
Paris
peace
treaty
of
1991,
the
UN
actually
had
one
of
the
greatest
transition
impacts
on
the
come
on
the
country
held
and
enforced
elections
set
up
their.
You
know
their
own
radio
station,
their
own
Jail
and
actually
helped
the
country
transition
to
a
little
bit
more
orderly
state,
where
some
resemblance
of
democracy
was
able
to
persist,
but
in
so
doing
used
the
US
dollar
to
create
a
strong
foundation
and
stable
currency
for
the
country.
A
A
The
ability
to
have
both
a
US
dollar
and
cambodia
and
real
instance
tokenized
in
this
mobile
wallet
is
a
very
important
step
in
achieving
that.
That
said,
je
serais,
the
be
the
head
of
the
central
bank,
wants
to
make
sure
that
people
are
educated
and
not
forced
to
make
this
decision,
and
so
you
know,
she's
been
she's
publicly
stated
she
doesn't
want
to
create
a
timeline
for
this,
but
absolutely
educate
and
and
show
people
how
to
use
this.
You
know
their
own
currency
to
create
commerce
and
and
open
up
the
doors
to
you
know,
transaction.
A
You
know
to
be
able
to
purchase
things
on
the
internet,
which
would
be
a
huge
step
up
in
the
economy
itself
and
there's
obviously
other
huge
implications
to
that.
But
peer-to-peer
transaction
is
a
is
a
big
result.
So
again,
hyper
ledger.
Roja
comprises
that
the
basics
of
the
system.
Everything
is
built
on
top
of
that,
but
the
requirements
as
put
forward
by
the
central
bank
when
this
project
was
created,
where
you
know
shared
ledger
that
can
be
monitored
by
the
central
bank
so
that
they
have
purview
over
at
least
the
transactions
in
the
country.
A
If
not,
the
individuals
that
are
are
transacting,
they
want
an
account
based
model
that
would
allow
people
to
create
a
digital
bank
account
with
just
a
smartphone
and
a
phone
number
which
is
which
is
entirely
possible
and
what
we've
achieved
there.
A
Byzantine
fault,
tolerant
consensus
mechanism
on
a
blockchain,
Multi
signature
control,
so
that,
if
someone
lost
their
private
key,
the
commercial
bank
that
they're
associated
with
is
able
to
regenerate
it
and
allow
them
to
recover
their
account
and
also
simplicity.
Around
the
commands
and
scalability
of
the
software.
A
That's
integrated
with
both
the
central
and
commercial
banks
it's
adapted
to
their
existing
fast
retail
payment
system,
so
there's
different
payment
systems
within
a
central
bank.
A
retail
gross
settlement
system
is
something
that's
used
for
large-scale
payments
between
banks,
but
this
system
is
focusing
primarily
on
retail
transactions
in
a
peer-to-peer
fashion,
which
we
can
get
a
little
bit
more
granular
with.
But
key
features
of
the
system
are
being
able
to
execute
and
settle
payment
transactions
in
real
time
with
settlement
finality.
A
A
We
have
so
far
about
8,000
people
using
the
the
payments
platform
itself
right
now
through
the
commercial
banks,
but
so
far
the
system
is
holding
up
very
well
in
terms
of
performance.
Obviously
it
can
debit
a
senders,
balance
and
credit
receivers
with
an
atomic
execution
of
you
know
through
the
tokens
and
either
the
Cambodian
reel
or
the
US
dollar,
which
obviously
allows
some
decentralization
and
that
the
the
user
owns
their
private
key.
But
the
central
bank
will
maintain
and
operate
the
nodes
to
to
observe
and
create
the
transactions
in
the
network.
A
So
in
allowing
the
country
to
transition
from
dependence
on
the
US
paper,
fiat
as
primary
currency
to
potentially
a
completely
digital
instance
of
both
the
US
dollar
and
the
cambodian
Riel
can
be
really
valuable
in
terms
of
reducing
corruption,
money
laundering
and
also
potentially
tax
evasion.
It
becomes
very
difficult
to
create
monetary
policy
or
collect
taxes
when
you
have
no
idea
how
the
transactions
are
actually
occurring
in
your
in
your
country,
given
that
80%
of
them
are
happening
with
us
paper
dollars
and
so
KYC
naml
done
on
the
individual
level.
A
You
know
first
digitally
and
then
later
physically
at
banks,
if
transactions
meet
a
certain
daily
threshold,
can
can
be
helpful
there
so
again
potential
economic
impact
for
the
country
itself,
you're
allowing
the
cambodian
Riel
to
regain
some
utility.
Historically,
it's
been
used
only
for
small
transactions
with
coins.
A
You
know
because
of
the
country
has
had
to
rely
on
the
dollar
and
its
stability
to
create
you
know
some
trust
and
stability
and
and
the
the
transparency
around
the
currencies
and
how
they
can
be
used
will
allow
people
to
use
the
Riel
a
little
bit
more
often
and
hopefully
gain
some
independence
as
a
sovereign
currency.
That
way
so,
you
know
historically,
the
US
dollars
allowed
foreign
direct
investment
because
of
the
lack
of
forex
risk,
but
there's
an
impetus
from
the
central
bank
to
try
and
create
a
little
bit
more
sovereignty.
A
So
I'll
just
show
you
guys
an
actual
demo
of
the
mobile
application
itself,
so
you
can
see
what
it
actually
looks
like
typical
crypto
looking
wallet.
If
any
of
you
guys
have
one,
as
you
can
see,
there's
an
instance
of
both
the
cambodian
Riel
and
the
US
dollar.
You
can
send
and
receive
deposit
at
a
bank
or
use
a
QR
code
to
initiate
a
transaction
and
everybody.
That's
in
your
phone
book
that
is
registered
in
the
system.
You
can
easily
send
money
to
just
by
clicking
their
name,
putting
in
the
amount
and
using
the
currency.
A
Again,
each
of
the
currencies
is
100%
asset-backed.
So
you
know
those
reserves
are
held
at
the
central
bank
and
obviously
these
these
innovations
being
a
lot
of
questions
and
that
what
happens
with
m1
and
and
m0
money
when
a
citizen
can
hold
an
account
directly
with
the
central
bank
right.
So
there's
all
sorts
of
political
implications
between
you
know
the
central
banks
and
the
commercial
banks,
and
you
know
what
this
means
for
savings
and
deposits.
A
Believe
it's
$50
a
day
without
having
to
go
and
physically
register
and
do
full
kyc
and
AML
and
a
physical
bank
so
it'll
out
people.
You
know
especially
people
that
live
in
more
rural
areas,
like
farmers,
to
transact,
digitally
and
and
be
able
to
purchase
things
both
peer-to-peer
and
on
the
internet
which
to
create
and
stimulate
quite
a
bit
of
Commerce.
A
So
there's
a
good
degree
of
security
with
somewhere
between
95
and
99
percent
accuracy,
with
respect
to
to
the
biometrics
that
are
recorded
to
prove
that
it's
a
real
person
and
that
the
person
is
who
they
say
they
are
when
they
create
their
account
and,
as
I
mentioned,
there's
account
limits.
People
can
top
up
their
their
accounts
at
a
physical
bank,
location
and
there's
obviously
also
the
potential
for
a
central
bank
to
issue
money
directly
to
its
citizens.
Should
that
be
an
objective?
A
B
A
This
is
so
this
projects
is
entirely
within
the
the
nation
or
king
of
Cambodia.
So
in
terms
of
the
you
know,
the
regulations
there.
Obviously
we
have
a
direct
relationship
with
the
central
bank
and
the
entire
system.
There
they're
also
the
regulator
as
well
as
the
issuer
of
currency.
So
it
was
pretty
easy
for
us
to
understand
what
the
the
regulations
impacted
in
terms
of
the
technology
and
build-out
and
software
did
you
want
to
add
on
to
that.
Do
you
have
another
question.
A
Yeah
right
right
now,
the
notes
that
that
allowed
the
transactions
are
all
hosted
within
the
central
bank
physically,
but
there's
an
opportunity
to
great
relationships
with
you
know
not
just
central
banks,
but
also
other
commercial
banks,
so
that
you
know
if
the
tokenized
infrastructure
was
compatible.
People
would
be
able
to
send
payments
across
borders
pretty
easily
and
frictionlessly.
A
It's
it's
still
very
much
ongoing
and
early
in
the
project.
It's
definitely
a
challenge.
There
are,
you
know
digital
banking
businesses
that
are
growing
out
from
the
existing
commercial
banks
in
Cambodia
as
well.
So
you
know
it's
an
education
process
as
much
as
anything,
but
the
central
bank
obviously
has
a
vested
interest
in
this
becoming
successful
and
and
widely
usable.
So
you
know
they're.
A
They
have
marketing
efforts
and
if
you
guys
wanted
to
check
out
the
the
central
bank's
website
for
the
project
is
become
dot,
MBC,
org,
dot,
KH
and
there
you
can
kind
of
see
how
they
interact
with
the
populace,
at
least
on
a
digital
forum.
But
they're
generally
has
to
be
almost
a
business
around
bakong
to
really
attract
people
to
use
the
platform
enough
for
it
to
be
meaningful,
and
so
it's
gonna
be
a
very
slow
process.
A
Again.
Shea
sare
herself
and
interviews
has
said
that
you
know
we
don't
want
to
force
this
upon
people,
but
the
reality
is
that
people
are
used
to
seeing
things
priced
in
dollars
so
to
transition
to
using
the
cambodian
Riel
as
a
sovereign
currency
will
take
a
long
time
just
because
people's
habits
are
so
set
in
stone.
But
that's
why
the
user
interface
and
the
mobile
application
and
the
right
style
custody
of
wallet
is
really
important.
C
C
A
So
the
central
bank
is
already
directly
coordinating
with
Malaysia
and
their
central
bank
to
create
compatible
infrastructure
using
pecan
or
similar
software.
We're
also
in
talks
with
the
Central
Bank
of
Thailand,
to
make
sure
that
everything
is
I
interoperable,
because
those
are
two
big
partners
in
terms
of
cross-border
payments
and
remittances.
A
You
know,
there's
you
know
managing
you
know
language
barriers,
the
lot
a
lot
of
the
more
practical
things
right,
making
sure
that
the
user
interfaces
are
simple
for
people
to
use
that
they
don't
have
to
retrain
the
entire
banking
staff
on
new
processes.
So
that
was
a
big
part
of
the
system.
Architecture
is
making
sure
that
it
integrated
well
with
the
existing
banking
infrastructure,
so
that
there's,
as
you
know,
few
hurdles
to
adoption
as
possible.
So
you
know
there's,
there's
political
obstacles.
There's
social
obstacles,
they're
scaling
obstacles,
but
I
would
say.
A
Probably
you
know
the
most
important
thing
is
making
sure
that
people
can
actually
use
it
right,
as
I
mentioned
earlier,
that's
been
a
huge
issue
in
the
blockchain
space
right.
The
underlying
technology
is
valuable,
as
we
all
know,
but
making
sure
that
the
consumer
can
adopt.
You
know
what
applications
are
created
using
blockchain
has
been
an
issue
and
that's
definitely
been
the
focus
here
with
this
project.
A
We
have
there's
8,000
people
actually
transacting
in
the
system
right
now.
I
don't
have
data
right
now
on
how
many
transactions
are
the
volume
I
could
get
it,
but
it
is
it's
significant
enough
enough
for
us
to
understand
kind
of
flows
and
issues
and
and
how
people
are
actually
using
it,
but
I
can
definitely
follow
up
with
a
little
bit
more
data.
A
It's
it's
gonna,
be
it's
gonna
be
slow
and
steady.
You
know
they
started
with
I.
Think
three
central
or
three
commercial
banks
participating
in
the
system
distributing
it
to
their
customers
and
now
they're
up
to
nine,
which
includes
a
cleda
which
is
the
the
biggest
bank
in
Cambodia,
and
so
it's
it's
scaling
slowly
and
shortly.
But
you
know,
eight
thousand
over
15
million
is
not
very
much
penetration
and
it's
still
very
early.
A
A
So
the
the
individuals
own,
their
private
keys,
the
commercial
banks,
have
multi-sig
authority
to
recover
private
keys.
If
someone
lost
it,
there's
potential
to
change
that,
but
the
central
bank
is,
as
does
not
have
access
to
who
those
individuals
are
specifically
their
identities
not
tied
to
their
account.
As
far
the
central
bank
knows,.
C
A
A
I'm
not
exactly
sure
what
their
public
stance
on
is
is
immediately,
obviously
through
cooperating
with
the
existing
commercial
banking
infrastructure.
They're
cognizant
of
that
and
want
to
ensure
that
you
know
order
is
maintained.
I
think
there's
reason
enough
to
maintain
the
the
structure,
as
is
so
that
there's
degree
of
privacy
and
anonymity
in
such
that
the
central
bank,
like
I
said,
doesn't
have
complete
access
to
the
account
holders
and
their
personal
information,
but
they
can
see
all
the
transactions
right
so
say
there
was
a
crime
that
needed
to
be
investigated.
A
A
No,
no
all
right
now
only
the
central
bank
can
see
all
of
the
transactions.
This
commercial
banks
can
view
transactions
amongst
their
customers,
but
the
interesting
part
is
that
all
digital
bank
account
holders
like
to
say
it
was
just
a
block
chain
based
account,
can
transact
with
any
other
bank
account
and
vice
versa.
So
the
transactions
are
universal
and
as
if
you
had
your
own
bank,
account.
C
C
A
Well,
I
mean
that's
the
decision
that
the
company
would
have
to
make
right
in
terms
of
whether
or
not
they
wanted
to
participate,
but
I
think
the
idea,
generally,
is
that
the
consentual
Bank
understands
that
trust
and
transparency
has
been
an
issue
right
and
that's
why
there
hasn't
been
widespread
adoption
of
the
rial
in
the
first
place.
So
you
know
their
objective
is
to
create
stability
and
Trust,
so
I
don't
think
that
they
have
much
motivation
to
kind
of
move
in
the
the
more
surveillance
type
of
direction.
A
A
I'm,
not
100
percent,
informed
on
on
Ric's
betting
Curt.
You
know
the
Swedish
Krona,
there's
obviously
everybody's
looking
at
this
right
now,
it's
a
definitely
a
buzzword
right.
This
is
what's
called
a
retail
semi,
centralized
digital
currency.
In
that
again
the
nodes
are
located
within
the
central
bank.
Yet
there
is,
you
know
some
degree
of
self
sovereignty
with
private
ownership
of
the
keys
and
the
ability
to
transact
peer-to-peer
without
an
intermediary.
So
it's
it's
a
little
bit
of
a
hybrid
that
way,
but
it
also
allows
for
potential
to
be
even
further
decentralized.
D
A
No,
it's
okay!
So
so
again,
it's
the
the
tokens
are
100%
asset-backed
right
so
initially
for
a
consumer
to
top
up
their
account,
they
would
have
to
deposit
physical
cash,
which
is
you
know,
de-facto
what
people
use
now
right.
So
they
say
they
had
five
US
dollars
that
they
wanted
to
convert
to
a
digital
instance
of
either
the
real
or
the
dollar.
They
would
have
to
go
to
a
bank
make
a
physical
deposit
and
then
their
their
digital
account
would
be
topped
up
with
tokens.
A
D
C
A
A
Yeah,
there's
there's
there's
debate
about
whether
or
not
that
degree
of
the
centralization
has
any
utility
whatsoever,
but
the
real
utility,
at
least
initially
comes
in
the
form
of
people
being
able
to
transact
that
otherwise
didn't
have
a
physical
or
didn't
have
a
bank
account
at
all
right
so
with
just
a
smartphone
and
a
phone
number
at
least
they
can
have
a
bank
account
with
you
know
minimal
kyc
done
through
their
phone.
That's
that's
really
the
core
innovation
that
is
allowing
more
commerce.
A
Very
very
likely
yeah,
yep,
yeah
and-
and
you
know,
I-
think
really.
The
the
value
and
the
in
the
grand
scheme
of
things
right
is
that
there's
potential
interoperability
with
tokenized
infrastructure
in
other
countries
right
and
also
the
potential
for
these
people
to
just
use
their
app
to
buy
things
on
the
Internet
right.
They,
if
you
know
90%
of
your
commerce,
is
us
physical
dollars.
It
makes
it
very
difficult
to
buy
things
online.
B
A
Yeah
yeah
yeah
so
right
now
they
can
only
see
transactions
of
customers
that
are
part
of
that
bank.
So
when
you
first
sign
up,
you
have
to
choose
a
particular
commercial
bank
that
you
want
to
associate
your
account
with,
and
they
you
know
for
kyc
and
AML
purposes
have
to
have
access
to
that.
But
right
now
the
central
bank
does
not
know
individually,
who
was
transacting
and
that's
probably
going
to
be
maintained,
but
right
now,
there's
already
eight
commercial
banks
using
it
and
they
only
have
access
to
their
customers.
A
Mm-Hmm
I
I
think
that
all
depends
on
policy
and
what
they
intend
to
do,
but
I
would
think
not.
It
all
depends,
but
it's
it's.
The
system
is,
is
flexible,
such
that
those
things
can
be
changed
whether
or
not
there's
an
impetus
to
that's
for
the
central
bank
to
decide
all
right.
Thanks,
guys
appreciate
it.