The Central Bank of Thailand (BoT) announced a release of Central Bank Digital Currency (CBDC) on the R3 Corda platform.
BoT announced the launch of Project Inthanon. The initiative is aimed at creating Central Bank Digital Currency (CBDC). Thai watchdog joined forces with eight partner banks to create a prototype solution that will be based on R3 Corda's technology.
Corda is a distributed ledger for storing, managing and synchronizing financial obligations between various institutions. Developers say that they use all the advantages of blockchain in their system minimizing its shortcomings.
The project was launched to study the possibility of using cryptocurrency in facilitating interbank transfers and improving KPIs of the country's banking system in general. The first stage of Project Inthanon will be completed at the end of the first quarter of 2019.
Based on the results of the first stage, BoT will consider scaling the product as well as applying it to third parties and cross-border transactions.
WHY IS IT IMPORTANT?
- The president of the central bank first talked about the concept in his speech in June, noting that his goal was to investigate the potential of blockchain to facilitate interbank transactions. After this, the project can be officially launched on a larger scale.
- Representatives of BoT noted that similar initiatives are also being implemented by the central banks of Canada, Hong Kong and Singapore.
- More often than not, countries that are experiencing economic difficulties and are under sanctions consider the possibility of creating CBDC. For example, Venezuela issued its own cryptocurrency Petro secured by oil in February this year.