The Bank of Thailand has announced the plans to develop a prototype pilot project to test the real-life business use cases of its Central Bank Digital Currency (CBDC).
The bank said in its official statement that before it launches the CBDC payment system for all businesses, it plans to pilot test it with large-scale enterprises. It has partnered with to pilot test their payment prototype system:
- Thailand’s Siam Cement Group (SCG)
- Thailand-based fintech firm Digital Ventures Company Limited
The project is scheduled to start in July 2020 pilot test with SCG is expected to conclude by the end of this year. The bank aims for a more efficient payment system with increased flexibility for fund transfers and faster payment settlement between suppliers through its CBDC.
Bank of Thailand (BOT) says that it will build the CBDC payment prototype based on the experience of Project Intathon, the collaborative project between the Bank of Thailand and the eight leading financial institutions to study and develop the proof-of-concept for domestic wholesale funds transfer using wholesale CBDC, has been accomplished in January 2020 with the successful completion of the cross-border transfer prototype co-developed with the Hong Kong Monetary Authority (HKMA).
The Bank of Thailand will assess the system’s feasibility and a way to easily integrate CBDC payments on other business platforms after the pilot. The bank remains open to private sector engagements to further promote innovation and explore potential uses cases for future adoptions.
In future, the BOT, the HKMA and the participating financial institutions will continue to collaborate and experiment CBDC for other use cases in cross-border transfers, which the Bank of Thailand will later announce in detail.