According to the Reuters report, the Bank of Thailand unveiled on Thursday plans to build a prototype of a payment system for businesses using central bank digital currency, or traditional money but in the digital form being developed by monetary authorities around the world. The prototype will be integrated with the procurement, and financial management systems of Siam Cement and its suppliers, according to the Bank of Thailand.
The project is expected to conclude by the end of this year.
The project will begin in July and is expected to conclude by the end of the year, Bank of Thailand said, adding its scope will include conducting a feasibility study. According to the central bank, the project marks an important step in broadening central bank digital currency’s scope and adoption to wider audiences, starting with large corporates. Many central banks are researching CBDCs. CBDCs differ from cryptocurrencies like bitcoin, which are produced by solving complex math puzzles and governed by disparate online communities instead of a centralized body.
Many central banks around the world continue to research CBDC.
Several central banks around the world are currently researching CBDCs and its uses and affect on the financial system. China has been developing its national digital currency from the last five to six years. Currently, the People’s Bank of China is testing its digital yuan dubbed as DCEP (Digital Currency Electronic Payment) in four cities, and the bank is expected to issue the digital currency to the public sometime in the future. China will become the first major nation to issue a central bank digital currency. The People’s Bank of China has accelerated the issuance of DCEP, according to many reports. As reported earlier, the central bank of Canada posted a job opening for a project manager to the CBDC project.