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Bank of Thailand is launching the Digital Currency Pilot project
The Bank of Thailand has announced plans to build a project to test the real-life application of its central bank's digital currency (CBDC) market scenarios.
The bank claimed in its official statement that it plans to test it with large-scale companies before introducing the CBDC payment system for all businesses.
They also collaborated with the largest manufacturer of cement and construction materials in Thailand, Siam Cement Group (SCG) and Thailand-based fintech company Digital Ventures Company Limited to test their payment development program on a pilot basis.
The project is set to launch in July 2020 and the SCG pilot test is planned to be finished by the end of this year.
With CBDC payments, the bank aims at a more effective payment mechanism with improved capacity for movement of funds and quicker settlement of payments between suppliers.
Following the test, the Bank of Thailand will determine the viability of the program and how CBDC payments can be effectively implemented into other market channels.
The bank said it will develop a CBDC payment system based on the experience of Project Intathon — a joint wholesale CBDC payment project undertaken by the Bank of Thailand and eight other financial institutions that was completed in January.
Big countries study the ability of CBDCs
China has remained a leader among the many countries that are experimenting with the development of the CBDC. While there are still only rumors as to when China will roll out its digital yuan, the country has continually emphasized the importance of the CBDC and has stepped up its development process.
Only recently, the Bank of Canada announced a work description titled "Project Director, CBDC," suggesting that Canada, too, has moved into the digital currency sector of the central bank. Banque de France also tested the digital euro successfully last month.
