The Bank of Thailand (BoT) has announced its plans to launch a Thai digital currency that will see the Kingdom get a central bank digital currency (CBDC).
The news comes at a time when Thailand is laying the foundations for its crypto industry going forward with the implementation of a spectrum of new regulations and now plans to create a Thai digital currency that would be controlled by the central bank.
New Thai digital currency to launch by BoT
The news that the Bank of Thailand has made significant progress on a plan to incorporate a cryptocurrency pilot program came to light via a press release directly from the BoT on Tuesday. The Kingdom’s central bank plans to launch their new Thai digital currency in the first quarter of 2019.
The BoT has stated that they have joined forces with eight Thai financial institutions to create a partnership that can collaborate to create Thailand’s first-ever central bank digital currency (CBDC), which will be organized under the name Project Inthanon. The BoT plans to run the Thai digital currency on R3’s distributed ledger technology platform, Corda.
In recent weeks, Crypto Disrupt has reported numerous stories regarding the implementation of new cryptocurrency regulations across Thailand that are laying the foundations and framework for the Thai ICO and crypto exchange sectors. The formation of this CBDC is the next phase in the evolution of the Thai crypto industry, which was outlined in the press release from the BoT this week:
“The outcome and insights from Project Inthanon will contribute to the design of Thailand’s future financial market infrastructure. This is in line with similar projects embarked upon by other central banks such as the Bank of Canada, the Hong Kong Monetary Authority and the Monetary Authority of Singapore. In addition to Project Inthanon, the BOT is conducting a DLT proof of concept for scriptless government savings bond sale to improve operational efficiency.”
Working together to implement a Thai CBDC
The creation and implementation of this central bank Thai digital currency will see the combined efforts of the BoT and several other major Thai-based financial institutions to develop and test the prototype for Project Inthanon. The plans include the facilitation of a wholesale fund transfer for the CBDC, although most of the testing in the early stages will focus on risk management strategies and liquidity saving mechanisms. This phase of Project Inthanon will be completed in the first quarter of next year in March 2019.
Over the past week, the Thai SEC has released news that seven new Thai crypto exchanges had passed regulations with over 50 more projects, mainly ICO based, now interested in operating in the Kingdom. With the latest rounds of the regulatory framework now in place and the plans to create a central bank Thai digital currency, the Thai crypto industry is currently making positive moves in the right direction.
Although the new Thai digital currency from the Bank of Thailand won’t be ready until early next year, Thailand is making its move as a major crypto player in South East Asia.