August 21st, the Bank of Thailand (BoT) released a preliminary roadmap for its central bank digital currency (CBDC) project, ‘Project Inthanon’.
The Bank of Thailand is in partnership with eight banks in a united project that will use R3’s Corda, a distributed ledger technology (DLT) platform to develop a prototype that will enable fiat funds transfers using the country’s interbanking system with the issue of CBDC tokens, dubbed ‘Project Inthanon’.
Blockchain will power the decentralized money transfer initiative in order to prepare the Thai financial sector’s technological capability to adopting new disruptive technologies so it will be able to handle the rapid developments effectively.
During a financial summit in Singapore back in June, Veerathai Santiprabhob, BoT governor, unveiled Project Inthanon, claiming it as the “new way of conducting interbank settlement” using CBDCs.
The Thai central bank added:
“The outcome and insights from Project Inthanon will contribute to the design of Thailand’s future financial market infrastructure.”
This project is not the first of its kind, seeing Singapore’s central bank finished Phase 1 of ‘Project Ubin’, over a year ago. The project was an effort to use blockchain in order to list a tokenized form of the Singapore Dollar (SGD) on a distributed ledger platform. The bank the announced in June 2017, that the central bank had successfully utilized a private Ethereum blockchain to issue digital tokens of its Singapore Dollar.
Project Inthanon initial phase will according to the Thai central bank, develop a “proof-of-concept prototype for domestic wholesale funds transfer by using wholesale CBDC.” With testing being finalized by March 2019.
The central bank said:
“Building upon the findings and outcomes from Phase 1, the project participants aim to further develop the capabilities of the prototype for broader functions including third party funds transfer and cross-border funds transfer.”