One of the areas in which a lot of advocates of cryptocurrencies are bullish about is having fiat currencies being replaced by a digital alternative.
While the ultimate goal may be to have a single, universal digital currency, a lot of these people would see national digital currencies being a massive step forward towards eventually reaching this goal.
Of course, governments want to be able to manipulate the supply of their currency in order to control different forms of monetary policy and mightn’t be able to do that with a digital currency.
What are the details about this new project?
The Central Bank of Thailand, the Bank of Thailand (BOT) has talked about how they are launching a new Central Bank Digital Currency (CBDC) which is a project they have dubbed Inthanon. They are working alongside the other big bans in the country in order to create this digital currency.
It is eight of the main commercial banks in the country who are part of this project and they are the Shanghai Banking Corporation, the Standard Chartered Bank of Thailand and Hong Kong, Thanachart Bank, Siam Commercial Bank, Kasikorn Bank, Bank of Ayudhya, Krung Thai Bank and Bangkok Bank.
They will come together in order to design the initial prototype for this project in which will see money being transferred in the banking system using this currency. They are planning on having the initial phase for this finished at some stage during Q1 in 2019.
There are somewhat similar projects currently being undertaken by the like of the Singapore Monetary Authority, the Hong Kong Monetary Authority, as well as the Bank of Canada.
As part of this project, they eventually plan to phase this project out to include the likes of 3rd party transfers of funds, as well as payments made cross border.
There has been a lot of activity in the crypto industry in Thailand recently following their set of regulations being introduced during this past July. This saw the Securities and Exchange Commission (SEC) in the country legalize numerous digital currencies.
They are also in the process of screening applications from those who are looking to hold their own initial coin offerings (ICOs). There are said to have already been 50 applications submitted in addition to 20 exchanges and 5 ICO portals.