Thailand plans to peak with central bank digital currency
The Bank of Thailand (BOT), R3 and local financial institutions have launched Project Inthanon to develop a central bank digital currency (CBDC).
Phase 1 expected to be completed by Q1 2019
The eight participating banks include Bangkok Bank, Krung Thai, Bank of Ayudhya, Kasikornbank, Siam Commercial, Thanachart, Standard Chartered (Thai), and HSBC.
The BOT and the participating banks will design and develop a proof-of-concept prototype for wholesale funds transfer by issuing the wholesale CBDC. The prototype will be built on Corda, a DLT platform developed by R3.
The outcome and insights from Project Inthanon (named after the highest mountain in Thailand) will contribute to the design of the nation’s future financial market infrastructure.
Key payment functionalities such as liquidity saving mechanism and risk management will be developed and tested during this phase.
Phase 1 is expected to be completed by the first quarter of 2019 after which the BOT will publish a project summary.
BOT is clearly inspired as it says this is in line with similar projects embarked upon by other central banks such as the Bank of Canada, the Hong Kong Monetary Authority and the Monetary Authority of Singapore.
In addition to Project Inthanon, the BOT is conducting a DLT proof of concept for scripless government savings bond sale to improve operational efficiency.
In case you wondered, scripless means: “Securities trading where only book entries represent the security holding and settlement, and no physical certificate is issued or exchanged”.
The Banking Technology Awards 2018 are now open to entries! Click here to apply.
