BOT announced a project to develop the prototype of a payment system for businesses using Central Bank Digital Currency (CBDC); this prototype will build on the knowledge from "Project Inthanon." Project Inthanon is a collaborative effort between BOT and eight leading financial institutions to study and develop the proof-of-concept for domestic wholesale funds transfer using the wholesale CBDC. The scope of the prototype development project will include conducting a feasibility study and developing a process to integrate CBDC with the innovative platform of business. The project will begin in July 2020 and is expected to conclude by the end of the year, after which BOT expects to publish the project summary and outcome.
In this project, CBDC prototype will be integrated with the procurement and financial management systems of "Siam Cement Public Company Limited" and its suppliers. The systems will be developed by "Digital Ventures Company Limited." The prototype is expected to serve as a financial innovation that enables higher payment efficiency for businesses such as increasing flexibility for fund transfers or delivering faster and more agile payments between suppliers. In addition, Project Inthanon has been accomplished in January 2020 with the successful completion of the cross-border transfer prototype co-developed with HKMA. In the next step, BOT, HKMA, and the participating financial institutions will continue to collaborate and experiment with CBDC, for other use cases in cross-border transfers, the details for which which BOT will announce later. BOT remains open to private-sector engagements to further promote innovation and explore potential uses cases for future adoption.
Related Link: Press Release
Keywords: Asia Pacific, Thailand, Banking, Securities, CBDC, Digital Currency, Fintech, Project Inthanon, Regtech, PMI, HKMA
Previous ArticleBoE and PRA Publish Annual Reports for 2019-20
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.