Bank of Thailand (BOT) announced the plans for a prototype of a business payment system using CBDC. The project will be based on the CBDC’s “Project Inthanon”.
19 June, 2020 | AtoZ Markets – BOT will develop a prototype of a business payment system using Central Bank Digital Currency (CBDC). Moreover, it will improve the efficiency of purchasing and settlement management in the business department. BOT also said it “recognizes and supports the important roles of financial innovation and technology. It will enhance the competitiveness and readiness of the business sector entering the digital age.”
CBDC Prototype Project Based on Project Inthanon
The CBDC prototype is based on the Project Inthanon, a decentralized ledger project launched by the Central Bank of Thailand in collaboration with the top eight commercial banks in the country. BOT will also test the prototype payment system in partnership with Siam Cement Group (SCG), Thailand’s largest cement and building material manufacturer, and Thailand-based fintech company Digital Ventures Company Limited. Mr. Thammasak Sethaudom, Vice President of Finance and Investment & CFO, SCG, said,
“SCG is pleased to work with the Bank of Thailand and Digital Ventures to optimize digital technology in business operations. We initiate the development of the Central Bank Digital Currency system which is vital for the country’s economic development. “
CBDC has been developed to reduce transaction processing time and steps. Moreover, it will increase the credibility and competitiveness of the business. The prototype test will start in July 2020 and will have a deadline at the end of the year. BOT will also publish the test outline and achievements next year. The central bank of Thailand also said:
“The BOT strongly believes that continuous collaborations and development in financial innovation with the business sector would lay the foundation in building technological capacity and readiness for the financial services and businesses rapidly entering the digital age. Moreover, the BOT remains open to private sector engagements to further promote innovation and explore potential uses cases for future adoptions.”
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