Thai Central Bank’s lnthanon Digital Currency Project To Build RTGS Interbank For CBDC Payments
Thai Central Bank Has Created A Blockchain Solution To Digital Currency Project
The Bank of Thailand, known as the central bank of the country, has recently decided to move ahead one of its most interesting blockchain projects, a digital currency that will be based on the blockchain technology.
This new solution will be used in order to enable the central bank to settle all interbank transactions using this new digital currency with its partners instead of fiat. According to the announcement, it will be used to connect the Bank of Thailand with other eight private commercial banking institutions in the country.
R3’s Corda will be used as the basis of this new software, as reported by Wipro, the tech partner of the central bank. The original prototype, called Inthanon, was created using the new currency of the central bank. Corda uses open source technology, which is part of the reason why the structure was chosen.
After the project is finally operational, the solution will be widely used for real-time gross settlement among the financial institutions, which will use the Central Bank Digital Currency in order to make the whole payment process faster.
So far, the prototype created by the company has demonstrated that the blockchain technology can be used to enhance both the speed and the efficiency of the payments because the interbank settlements will be made at all times.
This project was originally revealed in June last year and the Bank of Thailand has been working on it since then. The original goal was exactly to enhance efficiency, so it is obvious that the plan is working very well so far.
The main partners of the bank in this new project are the Siam Commercial Bank. Bangkok Bank Public, HSBC, Krung Thai, Standard Chartered Bank, and some others.
According to Tipsuda Thavaramara, the Thai Securities and Exchange Commission deputy, this new project will be aided by new legislation which was only recently passed. This way, the country will now legally be able to issue these digital tokens and even tokenized securities.
It was also revealed to the media that the bank is already working on some other blockchain-based project which is currently in proof of concept stage. This new project will be focused on boosting the efficiency of bond sales made by the local government.