BOT to Develop Prototype for Payment System Using CBDC
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
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