New York-based MonetaGo, a software company providing blockchain solutions to financial institutions and central banks, has successfully demonstrated how blockchain can be connected with current payment protocols using the NPCI’s current Immediate Payments Service (IMPS). The Indian authorities and banks were able to successfully analyze the workflow, authentication, connectivity, performance baseline, and security of the blockchain implementation.

MonetaGo developed the network by leveraging its Enhanced Information Payments System and proprietary software toolkit on the open source Hyperledger Fabric platform. This use of the technology is hoped to lead to its eventual use throughout the Indian banking system. The research process was sponsored by Indian banking authorities, including the Reserve Bank of India’s research arm, the Institute for Development and Research in Banking Technology (IDRBT), National Payments Corporation of India (NPCI), and included participation from some of the country’s leading banks.

Jesse Chenard, Chief Executive Officer of MonetaGo, said: “The endorsement of blockchain technology from the IDRBT and the NPCI allows the study and implementation to move to the next level. This research shows that blockchain technology can reduce processing times and costs in a transparent and secure manner. We are excited to have gotten the opportunity to work with the IDRBT, NPCI and some of India’s leading banks,”

This collaboration of financial institutions, banking authorities, and clearing corporations using existing protocols is the first step towards creating a commercially viable blockchain with fiat currency settlement.