Taking a cue from countries already working on their central Bank Digital Currency (CBDC), Thailand CBDC also has begun processing its digital currency with recent reports that the country is set to develop the prototype of the payment system for businesses using the digital currency.
Bank of Thailand (BOT), the apex bank in the country, said in a press release that they understand the need to keep up with financial innovation to improve payment efficiencies. The project’s goal mainly is to expand the currency’s scope, and adoption as implementation would only start with big firms.
BOT would also check with the prototype to see if it can aid increasing flexibility to transfer funds or deliver payments faster between suppliers.
Thailand CBDC prototype to launch July
The Thailand CBDC project would begin July to be completed by the end of the year. Afterward, the apex bank would give a summary of the project and how successful it was.
However, it is just one out of many CBDC project other countries in the world are planning to carry out as several countries are working on launching theirs. China, also popular to be against crypto, is already at the final stage of CBDC development. Recently, China tested its digital Yuan in four cities in the country as it is scheduled to launch before the end of the year.
Thailand CBDC to ride on project Inthanon
The CBDC project would be developed on knowledge gained from project Inthanon after it completed a cross-border payment prototype with the CBDC in January. Eight other financial institutions also collaborated with BOT on the project Inthanon.
In the next step, BOT, alongside Hong Kong Monetary Authority (HKMA), would continue experimenting with CBDC for other use cases in cross-border transfers, which the BOT will later announce in detail.
The BOT strongly believes that continuous collaborations and development in financial innovation with the business sector would lay the foundation in building technological capacity and readiness for the financial services and businesses rapidly entering the digital age.