R3 Corda Blockchain to Power Bank of Thailand’s Central Bank Digital Currency
Bank Of Thailand To Launch R3-Based Digital Currency
After partnering with multiple local financial institutions, the Bank of Thailand (BOT) has outlined its intentions to introduce its own cryptocurrency. According to the central bank, this move was spurred by the positive impacts of digital currencies and distributed ledger technology on the financial sector. As a result, the bank decided to adopt the technology to future proof the country’s financial sector.
Partnering Banking Institutions
The project, known as Inthanon, was developed in collaboration with eight banks, including Standard Chartered Bank (Thai) PLC, Siam Commercial Bank PLC, Thanachart Bank PLC, Bangkok Bank PLC, Bank of Ayudhya PLC, Krung Thai Bank PLC, Kasikornbank PLC, and The Hong Kong and Shanking Banking Corporation. The technological partner of the project is R3. As per the corresponding press release, the central bank is also working on a proof of concept algorithm to facilitate script-less government savings bond sales in an efficient manner.
The Two Phases Of Project Inthanon
In June, the governor of the Thai central bank issued a detailed statement on the project, revealing that they were mulling over leveraging blockchain technology to enable transactions between financial institutions as well as cross-border transactions. Presently, the BOT, in partnership with the banks mentioned above, are developing a proof-of-concept mechanism, known as the Central Bank Digital Currency for domestic wholesale fund transfer. The solution will be built using R3’s Corda blockchain framework and is currently in its first phase of development.
Depending on the performance of the initial phases, Inthanon will look to add superior functionalities to the prototype. Such include third-party and cross-border fund transfers. The project is said to have drawn its name form Doi Inthanon, the tallest mountain in Thailand. Nevertheless, this is only a speculation, as the Bank of Thailand is yet to confirm this statement.