The Central Bank of Thailand, Bank of Thailand (BOT), will develop a prototype of a payment system for enterprises, using the central bank’s digital currency (CBDC).
The prototype will supposedly be built based on the knowledge gained while working on the Inthanon project.
According to official statement, Bank of Thailand recognizes and supports “the important role of financial innovation and technology in enhancing the competitiveness and preparedness of the business sector entering the digital age.”
The project will start in July
Developed by the Central Bank of Thailand CBDC, it will be integrated with the procurement and financial management systems of Siam Cement Public Company Limited, as well as its suppliers. The whole will be developed by the Asian company Digital Ventures Company Limited.
“We expect the prototype to serve as a financial innovation that will enable companies to increase their payment efficiency, e.g. by increasing the flexibility of funds transfers or ensuring faster and more efficient payments between suppliers.”
– we can read in the announcement.
The project is expected to start in July 2020 and the deadline will be at the end of the year. Upon completion, Bank of Thailand will publish a summary of the project and its results.
In January, Thailand’s largest commercial bank, Siam Commercial Bank (SCB), signed a partnership with Ripple to introduce the company into the digital age and develop a mobile application that operates based on Ripple, called SCB Easy.
CBDC in the world
More and more countries have started to work intensively on their central bank’s digital currencies. For now, China is a pioneer in the development of this technology. The Chinese Digital Yuan can see the light of day in 2020. Currently, advanced project tests are taking place that take place in several cities in the country. Some time ago, you could even see screenshots from the wallet used to store digital yuan on the web.
At the end of May, France tested the digital euro, which proved to be a success. The Central Bank of France conducted the test by issuing bonds in the form of security tokens, and then settling them in digital euros.
According published last year survey on digital currencies, 70% of the central banks that took part in the survey are currently working or will soon start working on their CBDC.