bank of Thailand plans to develop a prototype payment system using Central Bank Digital Currency
Source: BangkokPost

Bank of Thailand To Develop A Payment System Using Central Bank Digital Currency

The Bank of Thailand (BOT) via a press release published on 18th June, 2020 announced that it would be developing a prototype payment system for businesses using Central Bank Digital Currency (CBDC) built upon the knowledge gathered from a cross border payment protype co-developed by the BoT and eight leading financial institutions-Project Inthanon.

bank of Thailand plans to develop a prototype payment system using Central Bank Digital Currency
Source: BangkokPost

The Thai CBDC is expected to provide an efficient payment medium for business corporations bringing in more flexibility when transferring funds and secured swift payments between suppliers. The project will begin in July 2020 and should be completed by the end of the year.

Overall the project will mark an important step in bringing clarity to how CBDC’s work and would help in the area of adoption for CBDC’s as well. The Thai CBDC prototype will be integrated into the procurement and financial management systems of large corporations in Thailand starting with the Siam Cement Public Company Limited and its suppliers.

Thailand has been at the forefront of blockchain adoption. On June 16th 2020, Thailand’s Public Debt Management Office (PDMO) said it plans to roll out a pilot savings bond issue of 200M baht for trials of a blockchain-based savings bond through Krungthai Bank’s (KTB) e-wallet.

See Also: Italian Banking Association (ABI) Gives Green Light for Creation of a European CBDC

About Project Inthanon

Project Inthanon is a collaborative project between the Bank of Thailand and eight leading financial institutions including Bangkok Bank Public, Krung Thai, Siam Commercial Bank, Standard Chartered Bank and HSBC to study and develop the proof-of-concept for domestic wholesale funds transfer using wholesale CBDC. The project was completed in January 2020 after the successful development of a cross-border payments prototype developed in partnership with the Hong Kong Monetary Authority (HKMA).