Bank of Thailand (BoT) Is Developing Its Own Cryptocurrency To “Enhance Operational Efficiencies”

Bank of Thailand (BoT) Is Developing Its Own Cryptocurrency To “Enhance Operational Efficiencies”

Thailand’s central financial institution, Bank of Thailand (BOT), In June it was announced that it was looking for a “new way to settle the interbank” by issuing its cryptocurrency. It seems that the BOT is moving forward on this plan because it is now working on making the Central Bank Digital Currency (CBDC).

BOT will partner with R3, which is the blockchain startup in New York, and 8 other local banks to collaborate and develop collaborative “proof-of-concept prototype” for their CBDC. According to the August 21 press release

R3’s open-source distributed ledger (DLT) platform will be used to implement the CBDC prototype and the new payment system will aim to facilitate “wholesale funds transfer.”

Improving Future Financial Infrastructure

The Digital Currency Initiative of Thailand is called Project Inthanon and its “results and insights. It has been said in the press release that … [country] will contribute to future financial infrastructure design.

In particular, the Inthanon project will be similar to other state supported digital currency projects currently developed by the Hong Kong Monetary Authority, Monetary Authority of Singapore, and Central Bank of Canada.

The press release also noted that the BoT is working on a DLT-based proof-of-concept for securities trading that does not require issuing or exchanging physical certificates. These types of transactions will reportedly be conducted through the sale of “scripless government savings bonds.”

Legalizing Cryptocurrencies

Looking at these developments suggests that Thailand’s government believes digital currencies have to the potential to “enhance the operational efficiencies” of its traditional financial system. Thailand’s banks were allowed to launch supportive companies to provide brokerage services to companies related to crypto and invest in blockchain startups.

Earlier in June, Thailand’s Securities and Exchange Commission (SEC) used the Thai Baht to validate the purchase and sale of seven cryptocurrencies.

These cryptos include bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Stellar (XLM), and Ripple (XRP).

 

 

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