The Bank of Thailand revealed that it is working on its central bank-backed digital currency. The central bank, which also regulates financial markets in Thailand, is reported to be working with commercial banks in developing a distributed ledger system, which would eventually support transactions in the new central bank-backed digital currency. The central bank is already developing a prototype of the digital currency as part of a project aimed at creating new payment systems for businesses.
The bank would see the feasibility of integrating a digital currency within the payment system.
The model of CBDC builds on the bank’s previous work with Project Inthanon, a blockchain platform developed by the Bank of Thailand in conjunction with leading commercial bank partners. The prototype digital currency will be piloted by Siam Cement Public Company and its suppliers, within their procurement and payments systems. The central bank said the project could serve as the first step for other businesses in adopting a CBDC. The central bank of Thailand hopes that the prototype digital currency will reduce costs for payments, as well as allow for more prompt payments.
The Bank of Thailand would begin testing prototype in July.
The pilot of prototype digital currency is scheduled to begin in July and would run throughout the rest of the year. The Bank of Thailand is expected to publish its outcomes from the exercise at the end of this year. The Bank of Thailand has become one of the latest central banks around the world to focus on a central bank-backed digital currency. As reported earlier, the central bank of Canada recently posted a job opening for a CBDC project manager. The People’s Bank of China is currently testing its digital currency dubbed as DCEP (Digital Currency Electronic Payment) in four cities. Several other central banks all around the world are currently researching centralized digital currencies.