Thailand - September 2018
The Bank of Thailand (BoT) is initiating a project aimed at developing and eventually launching a cryptocurrency to be used as a trading platform for transfers between participating banks. The project intends to explore the implications and the potential benefits of Distributed Ledger Technology (DLT) to enhance efficiency of the Thai financial market infrastructure. The BOT and the participating banks will collaboratively design and develop a proof-of-concept prototype for wholesale funds transfer by issuing wholesale Central Bank Digital Currency (Wholesale CBDC). The prototype will be built on Corda, a DLT platform developed by R3. R3 has ebeen involved in similar DLT projects for other major central banks, such as the Monetary Authority of Singapore.
The initiative is called ‘Project Inthanon’, and it is led by the BoT, iin collaboration with technology partners R3 and eight participating banks, namely Bangkok Bank, Krung Thai Bank, Bank of Ayudhya, Kasikornbank, Siam Commercial Bank, Thanachart Bank, Standard Chartered Bank (Thai) PCL and The Hongkong and Shanghai Banking Corporation Ltd (HSBC).
During Phase 1 of Project Inthanon, which is expected to be completed by the first quarter of 2019, BOT and the participating banks will collaboratively design, develop and test a proof-of-concept prototype for domestic wholesale funds transfer by using wholesale CBDC. Key payment functionalities such as liquidity saving mechanism and risk management will also be developed and tested during this phase. BOT will publish a project summary and based 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.
In addition to Project Inthanon, the BOT is conducting a DLT proof of concept for scripless government savings bond sale to improve operational efficiency
(Sources: The Phuket News; Bank of Thailand)