Bank Of Thailand’s Project Inthanon To Launch Central Bank Digital Currency with R3 Tech
Bank Of Thailand Set To Launch A Digital Currency Based On R3 Tech
The Bank of Thailand (BoT), country's central bank has declared that it is working on a project ‘Inthanon‘ that will devise and develop a proof-of-concept prototype for wholesale funds transfer by issuing a wholesale Central Bank Digital Currency (Wholesale CBDC).
BoT is partnering 8 participating banks in a collaborative project that will use R3’s distributed ledger technology (DLT) platform Corda to build a proof-of-concept prototype that will enable domestic funds transfers within the country’s interbank system with the issue of CBDC tokens. The joint effort to that end is being called ‘Project Inthanon’.
R3’s Corda is a distributed ledger technology (DLT) platform that has been designed to work within the financial service sector and uses a permissioned system to restrict data access to the required participants only.
The ultimate purpose of the effort is to use the digital currency to facilitate interbank transactions and to “enhance the efficiency of the Thai financial market infrastructure,” according to the announcement.
To assist with the so-called Project Inthanon, the BoT has signed up R3 as a technological partner and eight other participating institutions, including Bangkok Bank Public, Krung Thai, Siam Commercial Bank, Standard Chartered Bank (Thailand) and HSBC. In addition to the project Inthanon, the BOT is conducting a DLT proof of concept for scriptless government savings bond sale to enhance operational efficiency
The bank announced the projected deadline as follows:
“Project Inthanon Phase 1 is expected to be completed by the first quarter of 2019 after which the BoT will publish a project summary accordingly. Building upon the findings and outcomes from Phase 1, the project participants aim to further develop the capabilities of the prototype for broader functions including third party funds transfer and cross-border funds transfer.”
The BoT confirmed it would subsequently publish a summary of the project, before drafting goals for the next phase of its central bank digital currency token.
Notably, in March 2018, the Thailand Blockchain Community Initiative was launched, bringing together Thai’s large banks, state-owned enterprises, corporate giants and the central banks. The working group has been piloting various blockchain-based initiatives that are meant to enhance efficiency.