Central Bank of Thailand is developing a payment system using state cryptocurrency

The Central Bank of Thailand (BoT) is developing a prototype of a new payment system for payments betweenfinancial organizations using state cryptocurrencies.

The main goal of the payment system is toconducting an analysis of the economic feasibility of the cryptocurrency of the Central Bank, as well as assessing its capabilities for settlements between Thai companies. BoT announced the need to create a payment blockchain system to promote the development of the financial sector and the widespread adoption of its own cryptocurrency.

According to the bank, you need to start with largefinancial organizations, therefore, the prototype of the state cryptocurrency will be tested by Siam Cement Public Company Limited, one of the largest procurement and finance management systems in Thailand, together with its suppliers. Work on the project will begin in July, and by the end of the year, the Bank of Thailand will be ready to submit a report on the results.

BoT added that the system will be based ondevelopments of the Inthanon research project, which first became known in 2018. It subsequently involved the Hong Kong Central Bank (HKMA) and several large Thai banks to implement a proof of concept (PoC) prototype based on distributed ledger technology.

Inthanon Test Success Reportwas unveiled in January. The BoT said banks will continue to experiment with government-owned cryptocurrencies and explore different options for using them in cross-border payments. After successful testing in large companies, the Central Bank of Thailand will be ready to interact on this issue with the private sector.

Let us recall that at the end of 2018 the President of the BankThailand's Veerathai Santiprabhob said that the transition to a digital currency will not happen within the next 3-5 years due to the complex nature of the monetary system.

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