Thailand Government Developing Its Own Cryptocurrency
August 24, 2018 5:30 pm
The Bank of Thailand (BoT) has announced that it is planning to launch its own cryptocurrency. According to the BoT, this decision is made as a means to enhance operational efficiencies.
BoT has collaborated with R3, the blockchain startup, and 8 other banks to develop Central Bank Digital Currency (CBDC). The currency would serve as a new way to carry out interbank settlements.
The technology partner behind this decision is R3, blockchain startup based out of New York. Eight local banks are also a part of this collaboration to develop a proof-of-concept prototype for the cryptocurrency.
R3 will be implementing its open-source distributed ledger (DLT) platform to implement the planned prototype. It will facilitate the transfer of wholesale funds.
This initiative is named as Project Inthanon. It is expected to be similar to various other state-backed digital currency projects such as the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Central Bank of Canada.
In a press release, BoT revealed that this currency will be used for securities trading so that banks no longer have to use or exchange physical certificates. This will also help save precious time for inter-bank transfers.
The Phase 1 of the CBDC project is underway and is expected to be completed by the first quarter of 2019. It may also be used to facilitate easier cross-border payments and third party fund transfer.
The 8 banks that are part of this implementations are as follows
- Hongkong and Shanghai Banking Corporation (HSBC)
- Siam Commercial Bank
- Standard Chartered Bank (Thai)
- Bangkok Bank
- Krung Thai Bank
- Bank of Ayudhya
- Thanachart Bank
Back in June, Thailand’s Securities and Exchange Commission (SEC) had legalized buying of seven cryptocurrencies namely, Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Stellar, and Ripple.