Thailand’s central bank, the Bank of Thailand (BOT), is advancing its digital currency project by developing a blockchain-based prototype solution that will enable the central bank to settle interbank transactions among its eight commercial bank partners with digital currency.
According to CoinDesk, the news was first announced by the BOT’s tech partner, Wipro. The prototype was developed as part of the BOT’s digital currency project, called lnthanon,
Wypro said the solution will allow for decentralized interbank real-time gross settlement (RTGS), using a wholesale Central Bank Digital Currency (CBDC) for quicker payments. It also noted that the prototype has successfully proven that distributed ledger technology (DLT) can “significantly enhance payment efficiency by enabling 24/7 interbank settlements.”
The central bank first announced the project in June as it sought to develop its own blockchain-based cryptocurrency for faster and more cost-effective interbank transactions. Initially, the goal was to better understand the potential of the technology before proceeding to bring CBDC into larger scale use.
BOT Governor Veerathai Santiprabhob indicated during a speech at an event in Singapore that the development of a wholesale central bank digital currency could be expected as part of the kingdom’s wider efforts to trial blockchain technology across multiple sectors.
In August 2019, the BOT said the ultimate goal of the project was to enhance the efficiency of Thai financial market infrastructure, with banking partners including Bangkok Bank Public, Krung Thai, Siam Commercial Bank, Standard Chartered Bank (Thailand) and HSBC, among others.
The central bank also revealed it was working on another DLT proof-of-concept (PoC) in order to boost the efficiency of government bond sales.
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