- The Bank of Thailand (BoT) is the latest central monetary regulator to claim its resurgence towards centrally issued and controlled digital currency.
- Project Inthanon Phase I is set to be launched by the Thailand central bank based on the Distributed Ledger Technology.
The Bank of Thailand (BoT) is the latest central monetary regulator to claim its resurgence towards Central bank digital currency. The prototype project expected to run until the end of this year. Project Inthanon Phase I is set to launch by the Thailand central bank based on the Distributed Ledger Technology.
The Bank of England first initiated the concept of Central Bank Digital Currency on the global platform. Since then, a lot of central governments are in talks to launch digital currencies of their own. It ought to be an outright competition with private digital currencies such as cryptocurrencies and other virtual currency.
CBDC Project Inthanon Phase I
CBDC is a hybrid form of currency where it has qualities of a cryptocurrency. Still, the sole distinguishing factor is that a central authority or regulatory body issues it. Phase 1 has enabled the use of a real-time gross settlement system using digital currency issued by it: Dr. Veerathai Santiprabhob, Governor, Bank of Thailand.
He has stated that with the help of a better understanding of DLT systems, they can disrupt the financial ecosystem. He further exclaimed that it will improve the resiliency of the digital payments system and will provide reinforced efficiency. Several national banks brought on board to carry out the vision of the central bank.
The first phase will look to evaluate the functionality of the RTGS system and develop a collaborative network among financial institutions in the country. The governance aims to tokenize cash and government bonds as one of its prime activities. It boasts of a mechanism that involves decentralized bilateral transfer wherein two countries can accept digital currencies as a medium of payment.
The Bahtnet will play a key role in carrying out the objectives of centrally issued digital currency. CBDC will ensure public access to legal tender and expand its user base. Also, Experts say it is a transition towards a cashless society with strong competition from private players in the digital currency forefront. Lastly, it will enhance cross-border payments as it leads to time-saving and cost-effectiveness.