The Bank of Thailand (BOT) has announced its plans to launch a pilot project to test its central bank digital currency (CBDC) payments system. The BOT wants to develop a prototype to test the real-life business use-case of its CBDC with large scale enterprises.
According to the official statement from the bank, the CBDC prototype will be integrated with the procurement and financial management systems of the Siam Cement Public Company Limited and its suppliers developed by Digital Ventures Company Limited. The pilot project is expected to serve as a financial innovation that allows higher payment efficiency for businesses.
The pilot project is scheduled to begin in July 2020 and is expected to conclude by the end of the year. After this, the BOT will assess the system’s feasibility and a way to easily integrate CBDC payments on other platforms. It will then publish the project summary and outcome accordingly.
The BOT said it will build the CBDC payment prototype based on the experience of Project Inthanon which was accomplished in January 2020. It was a collaborative effort between the BOT and 8 giant financial institutions in the country. Their aim was to study and develop the proof-of-concept for domestic wholesale funds transfer using wholesale CBDC.
According to the announcement, the next step for the BOT and the participating financial institutions is to continue to collaborate and experiment CBDC for other use cases in cross-border transfers. The BOT noted that details about this development will be announced later.
The country’s central bank believes that continuous partnerships and development in financial innovation with the business sector would pave way for building technological capacity and readiness for the financial services. The bank added that it still remains open to private sector engagements to further promote innovation and explore potential use cases for future adoption.