Bank Of Thailand Developing Central Bank Digital Currency Based On Corda Blockchainbr>
The Bank of Thailand (BOT), the country’s central bank, has announced the first phase of its central bank digital currency (CBDC) initiative.
The BOT said in a release that it is partnering with eight commercial banks in a collaborative project that will use R3’s blockchain platform Corda to build a wholesale CBDC. The eight participating banks are Bangkok Bank, Krungthai Bank, Bank of Ayudhya, Kasikornbank, Siam Commercial Bank, Thanachart Bank, Standard Chartered Bank Thai and HSBC.
Under Project Inthanon Phase 1, the BOT and the participating banks will collaboratively design and develop a proof-of-concept (PoC) prototype for wholesale funds transfer by issuing wholesale CBDC. Key payment functionalities such as liquidity saving mechanism and risk management will also be developed and tested during this phase. Project Inthanon Phase 1 is expected to be completed by the first quarter of 2019, after which the BOT will publish a project summary accordingly.
“The outcome and insights from Project Inthanon will contribute to the design of Thailand’s future financial market infrastructure,” the central bank said. “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. 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.”
In addition to Project Inthanon, the central bank is conducting a blockchain PoC for scripless government savings bond sales to improve operational efficiency.
“Technological change is having a major impact on financial services,” the central bank said. “Creating an ecosystem conducive for collaborative learning in technology will be an important driving force towards a digital future for the Thai financial sector.”