Dragonfly Fintech wins G20 TechSprint CBDC Challenge

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 awards ceremony in Jakarta.

This third edition of TechSprint aims to catalyze the development of central bank digital currency (CBDC). 21 finalists from more than 100 applicants worldwide developed and submitted innovative best-in-class CBDC solutions.

Dragonfly Fintech Pte. Ltd. from Singapore won the coveted “Efficient and robust way to issue, distribute and transfer CBDCs” category in front of around 100 contestants globally, including some Fortune 500 companies.

The other finalists for this category included BitMint, FIS, Mastercard Asia Pacific, R3, Ripple, Roxe CBDC and SeA (Stellar, eCurrency and ANZ).

Other competition categories were “Enabling Financial Inclusion” and “Improving Interoperability”. Eleven global expert judges conducted rigorous evaluation and scoring to determine the winners.

Announcing this year’s winners, Cecilia Skingsley, Head of the BIS Innovation Hub, said:

“This TechSprint has allowed us to improve our practical work with CBDCs.” These technological solutions add to the central banks’ toolbox and provide a springboard for further development of CBDC. Our heartiest congratulations to the winning teams. “

Dragonfly’s winning production-ready solution demonstrated an efficient and robust means of issuing, distributing and transferring CBDC for wholesale and retail use. The submitted solution contained the following:

1. nCore: Dragonfly’s proprietary blockchain infrastructure, designed for digital banking, enabling regulatory compliance, privacy and control, direct correspondent banking and interoperability with legacy systems.
2. Central Bank Solution: Integrated with an independent central bank-controlled network, a central bank can securely issue and distribute CBDC, conduct monetary policy, and have complete control over CBDC in circulation. Onboarded financial institutions (FIs) can leverage the network to settle transfers in multiple currencies.
3. mWallet: Integrated with an independently controlled FI network, Dragonfly’s mobile banking solution comes with a modularized backend operational management system that can quickly scale into a full-fledged digital bank.

Dragonfly followed key design principles to create the CBDC SIMPLEwith the solution:

• Scalable: The distributed multi-network design can be quickly scaled to serve a national CBDC rollout and facilitate cross-border payments.
• Interoperable: Operators can be integrated with existing core bank ledgers and external payment and settlement rails.
• Modular: New digital banking modules can be easily plugged in using APIs and SDKs available in several common coding languages.
• Programmable: High programmability simplifies the design of innovative services, giving operators a competitive advantage.
• Layered: The solution is a ready-to-use stack with future-proof layer one and two technologies.
• Expandable: A multi-touchpoint experience with dual offline capabilities that can serve the unbanked.

Dragonfly’s founder and CEO, Lon Wong, offered his thoughts on the optimal implementation for CBDC:

“For any country to embark on a CBDC, I believe an implementation must be able to converge with the existing web of legacy financial systems. The financial burden of a significant CBDC rollout, especially for a large and scattered archipelago like Indonesia, should be minimized through distributed and decentralized technology, preferably in a cloud environment, which enables the lowest possible cost of ownership without a single point of failure.“

Board member and advisor to Dragonfly, Jeswant Gill, outlined the next step for the company:

“Our avant-garde platform infrastructure allows us to keep building more plug-ins, features and functions. The modular design enables continuous innovation that allows our solution to develop and mature at an accelerated pace, staying on course as a market leader. A key focus going forward is to engage and collaborate with the Indonesian government to pilot our CBDC solution.“

Winning this challenge serves as confirmation that cutting-edge technology can be implemented cost-effectively. Dragonfly is inspired to bring its practical solution to emerging economies globally.

About Dragonfly Fintech

Dragonfly Fintech offers ground-breaking technology that is optimally cost-effective and easily accessible. Its customizable blockchain-powered fintech solutions help businesses grow revenue and expand offerings while keeping costs in check.

Dragonfly solves legacy problems such as complex infrastructure, slow transactions and low interoperability with a technology suite that allows businesses and governments to leverage blockchain technology, deploy cutting-edge fintech solutions with fast time-to-market and maximum availability.

To find out more about Dragonfly’s products, visit the website. Get in touch by email [email protected]

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