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Bank of Thailand Rolls Out Digital Currency (CBDC) Pilot Project

The Bank of Thailand (BOT) is launching a project to test its Central Bank Digital Currency pilot.

The BOT’s CBDC pilot project is the outcome of its earlier project named Inthanon. Inthanon is a cross-border transfer prototype which is the collaborative project with other eight leading financial institutions that was accomplished in January 2020 and co-developed with the Hong Kong Monetary Authority (HKMA).

On June 18, the official press release of Bank of Thailand announced the launch of the prototype development project of Central Bank Digital Currency (CBDC) to “increase flexibility for fund transfers, or delivering faster, and more agile payments between suppliers.” 

As per the information, for the CBDC pilot project, the BOT has partnered with Thailand’s largest Cement and building provider- Siam Cement Group (SCG) and Digital Ventures Company Limited – Siam’s innovation arm which works in union with Accenture.

Siam Cement procurement solution is already deploying blockchain technology which is built on R3’s Corda enterprise framework. The same technology would be deployed in the latest BOT’s CBDC pilot project.

Siam Cement Group (SCG) is Thailand’s biggest and oldest construction materials provider including steel and piping across the world. As per the strategy, the bank wants to test the prototype of CBDC in real-life business use cases and for that tapping the large scale enterprises before launching it to the mainstream business houses.

Meaning, the launch of the Central Bank Digital Currency prototype, the Bank of Thailand wants to build the feasible systems, based on project Inthanon, in the B2B payment processes while integrating chief businesses at the first stage to cater to the rest of the businesses thereafter analyzing the results. 

The CBDC is going to deploy in SCG’s blockchain payment process that will commence in July 2020 and would complete by this year’s end. 

After completion of the pilot project, the bank would publish the outcome, accordingly.