Bank of Thailand launches digital currency prototype

In July, the country’s largest company will start using prototypes of CEC

Bank of Thailand will launch a prototype digital currency. Photo: bangkokpost.com

The Bank of Thailand, CBDC, is working on a prototype business payment system using the central bank’s digital currency.

Already in July, they plan to integrate the CBDC prototype with procurement and financial management systems of Siam Cement and its suppliers, the country’s largest company, reports Finextra.

With the help of this project, which will run until the end of the year, the central bank wants to evaluate how much the use of CBDC can increase the efficiency of payments for businesses. The project is expected to increase flexibility to transfer funds and accelerate payments between suppliers.

The Central Bank of Thailand also said the pilot program would use the experience of Project Inthanon – a joint project of the regulator and eight other financial institutions. In 2018, the project carried out research and development for national transfers using government-backed digital currency.

The central bank is actively exploring options for using CBDC. Earlier this year, the BOT together with the Hong Kong Monetary Authority (HKMA) successfully completed the construction of a prototype for cross-border transfers.

Recall that in 2018, Thai authorities approved a law on the taxation of cryptocurrencies. According to the document, all transactions with their use should be 7% VAT as well as 15% on capital gains.

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Earlier, we wrote that Raiffeisen Bank (RBI), one of the largest Austrian banks, would start using digital currency in a pilot mode to accelerate cross-border operations.

Read: State Cryptocurrency: Why Central Banks

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