Thailand’s central bank plans to develop a prototype of a digital currency decentralized payment system

The Bank of Thailand has announced the development of a prototype commercial decentralized payment system, becoming the latest monetary regulator to join the ranks of central bank digital currencies (CBDCs), Finance Magnates reported June 18.

The digital currency prototype of the Bank of Thailand will be based on the Inthanon Project, a distributed ledger initiated by the country's central bank in cooperation with eight major commercial banks.

The project includes conducting feasibility studies and developing a process to integrate CBDC with corporate innovation platforms. The new prototype project is scheduled to start next month and last until the end of this year. At that time, the Bank of Thailand will announce the status and results of the project.

The Bank of Thailand said the project will start with large enterprises and is an important step in expanding the scope and adoption of central bank digital currency. The central bank digital currency prototype will be integrated into the procurement and financial management systems of Siam Cement Public Company and its suppliers, and Digital Ventures Company will be responsible for developing it.

The Bank of Thailand hopes that this prototype system will improve business payment efficiency and flexibility in fund transfers, providing faster and more flexible payment methods between suppliers.

Government and private sector work together to support DLT research

The Bank of Thailand also said that a proof-of-concept prototype for large-value fund transfers within Thailand was completed in January, and a prototype for cross-border fund transfers was also developed with the Hong Kong Monetary Authority (HKMA). Now, all partners will conduct use case tests of digital currencies in other aspects of cross-border transfers.

Meanwhile, central banks in other countries are also seriously considering the development of digital currencies. For example, the South Korean central bank recently appointed a legal advisory group to study digital currencies after launching a pilot program. In Europe, the French central bank is also working with private banks to test the digital euro.

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