Thailand Embarks on Its Own Wholesale Central Bank Digital Currency
In an announcement on Tuesday, the Bank of Thailand outlined a preliminary roadmap for âProject Inthanonâ, its central bank digital currency (CBDC) initiative.
The Bank of Thailand (BoT), the countryâs central bank, is partnering 8 participating banks in a collaborative project that will use R3âs distributed ledger technology (DLT) platform Corda to build a proof-of-concept prototype that will enable domestic funds transfers within the countryâs interbanking system with the issue of CBDC tokens. The collective endeavor to that end is being dubbed as âProject Inthanonâ.
The decentralized money transfer initiative, powered by blockchain technology, is a means to âraise the Thai fina ncial sectorâs technological readinessâ for adopting new disruptive technologies in a concentrated effort to âenhance operational efficienciesâ, the central bank said in its announcement.
Project Inthanon was first announced by BoT governor Veerathai Santiprabhob during a financial summit in Singapore earlier in June this year, heralding the project as a ânew way of conducting interbank settlementâ using CBDCs.
Project Inthanon will be led by the BOT and will see New York-based R3 as its technology partner with 8 â" mostly domestic â" participating banks. The CBDC project draws parallels to similar efforts undertaken by BOTâs counterparts in Canada, Hong Kong and Singapore, the Thai central bank added.
âThe outcome and insights from Project Inthanon will contribute to the design of Thailandâs future financial market infrastructure,â the BoT said, underlining the significance of the project.
Over a year ago, Singaporeâs central bank completed Phase 1 of âProject Ubinâ, its own blockchain effort that began with the intent to place âa tokenized form of the Singapore Dollar (SGD) on a distributed ledger platform.â In June 2017, the Singaporean central bank revealed it had used a private Ethereum blockchain to successfully issue digital tokens of its national currency.
Phase 1 of Project Inthanon will see the BOT and the eight participating banks collaborate to design, develop and test a âproof-of-concept prototype for domestic wholesale funds transfer by using wholesale CBDCâ, the central bank said. Core payment functionalities including risk management and means toward liquidity savings will also be tested during the phase, expected to be completed by March 2019.
The BOT confirmed it would subsequently publish a summary of the project, before outlining goals for the next phase of its central bank digital currency token.
The central bank said:
Building upon the findings and outcomes from Phase 1, the project participants aim to further develop the capabilities of the prototype for broader functions including third party funds transfer and cross-border funds transfer.
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Source: Google News Thailand | Netizen 24 Thailand