Thai Bank Announce Their New Crypto Project On R3 Corda
On the twenty-first of August, the Bank of Thailand announced that they are currently implementing the creation of a CBDC, which is a cryptocurrency developed by the government and the central bank.
They have explained that they are to use R3’s Corda to create a wholesale bank around the new currency. The term “wholesale” refers to the CBDC’s exclusive usability among businesses and markets rather than individual transactions.
As a DLT, Corda works best with the financial service field and is able to allow or reject its users’ access. So, only the people with the permission to access are able to.
The Thai government plans to use cryptocurrency to see how far they can develop their ecosystem for the future. They have announced that the prototype for the project is to be released by March 2019.
They also state that the project is to be completed with the support of 8 organizations including Bangkok Bank Public (BBP), Siam Commercial, and also, HSBC, and other banks. The mission towards the project is to improve the infrastructural efficiency of the Thai ecosystem.
On top of this project, the BoT stated that they’re looking for ways to implement a DLT to create digital bonds for government savings, adding that this will save the government the cost of time and paperwork.
The announcement has become very controversial since then; in the banking sector, several entities approved to the idea as ideally a milestone in the country’s financial progress, and others disdained the idea. For instance, the research director of R3 shared his predictions of the fast development of the wholesale CBDC during 2018, and he highlighted various benefits from the projects.
At the other end of the spectrum, the Bank of England and the BIS had to disagree; they stated that the project at hand might potentially be the cause of a less stable deposit funding process within the commercial bank.