BOT Enters Third Phase of CBDC Development

Source: Regulation Asia Editors, Regulation Asia 2020-07-20

The BOT is planning to expand CBDC use among large businesses and, in September, to transactions with the HKMA.

The BOT (Bank of Thailand) has entered the third phase of development of its CBDC (central bank digital currency), reports The Nation.

According to BOT assistant governor Vachira Arromdee, the central bank is already using a CBDC for financial transactions with some big businesses.

In June, the BOT unveiled a new project to develop a prototype payment system for businesses using a CBDC developed by Digital Ventures. The project was said to involve integration of the CBDC in the procurement and financial management systems of industrial conglomerate Siam Cement PCL and its suppliers.

In a statement, the BOT said the study will facilitate a better understanding of the impacts and limits of the use of the CBDC. It will also help prepare the private sector for the changing digital landscape and provide a basis for further innovation in corporate finance.

According to Vachira, the BOT has plans to expand the CBDC’s use among other large businesses, as well as for transactions with the HKMA (Hong Kong Monetary Authority) in September.

The BOT is also thinking about expanding CBDC use to the general public, subject to the completion of a comprehensive study looking at the pros and cons, and the impact on financial stability.

The BOT’s work on CBDCs builds upon Project Inthanon, a collaboration between the BOT, HKMA, and eight financial institutions completed in January 2020 to study and develop a proof-of-concept CBDC for domestic wholesale funds transfers.

BOT

CBDC

BOT Enters Third Phase of CBDC Development

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