In recent months, there has been some silence around the block chain and the associated advantages for a decentralized payment system. But behind the scenes, crypto-currency is still being experimented with and the block chain technology is used in a wide variety of areas. Thailand is now taking another big step towards crypto-currency. The Bank of Thailand is developing, so its latest press release, the prototype of a payment system based on a central bank digital currency (CBDC).
The bank is currently working with Thailand’s oldest cement producer, Siam Cement Group, to integrate the central bank digital currency into the company’s procurement and financial management process. The Bank of Thailand is currently developing the new system in cooperation with Blockchain and Crypto Currency Companies.
However, since Blockchain is still waiting for the big breakthrough, the prototype project, according to the bank, also includes a feasibility study of the payment system. The CBDC project will start next month and is expected to be completed by the end of the year.
“The project marks an important step in broadening CBDC’s scope and adoption to wider audiences, starting with large corporates”
According to the Bank’s press release, the CBDC prototype is expected to be based on the Inthanon project, which was launched in 2018. It was a cooperative project between the Bank of Thailand and eight leading Thai financial institutions to promote technological development in the Thai financial sector.
The ideas of a central bank digital currency is nothing new. Banks around the world are considering using the possibilities of crypto currencies to digitize their traditional banking systems. As a result, the Fintech and banking world is watching Thailand in awe and waiting to see what will become of the CBDC prototype by the end of the year.