The worldwide IT leader Wipro Limited together with an enterprise software firm called R3 have set up a blockchain solution prototype. R3, which deals with the distributed database technology, says that the prototype will enable the interbank digital currency settlements in Thailand.

An overview of the plan

The plan is to have the Bank of Thailand (BoT) and eight other local commercial banks benefit from the move. BoT happens to be the biggest in the country.  Analysts have commended the move that will facilitate the decentralized interbank real-time gross settlements. The plan will involve using the wholesale central bank digital currency (CBDC).

Inthanon is the first phase of the project. The solution employed is functioning using open source blockchain platform Corda. There is currently the need to expand Thailand’s financial sector’s technological expertise. The best way to achieve that will be through embracing tech and digitization.

Future expectations

The Bank of Thailand thought of the August 2018 Inthanon project launch as a step towards the right direction in advancement. It disclosed about its plan to establish a wholesale option of a CBDC that would limit its use to markets and financial institutions. It also spoke about the CBDC that the general public can use and the impact.

According to a statement made recently by the bank’s governor, it might take quite some time to reach goals. He outlined that it wouldn’t be easy for the global jurisdictions to make the move from fiat money to digital currencies.

Siam Commercial Bank is the biggest commercial bank in Thailand. This bank and PTT Exploration and Production Public Company have pronounced completion of a blockchain test for cross-border business-to-business payments.

Tipsuda Thavaramara, the deputy secretary-general of the Thai Securities and Exchange Commission on May 2 spoke about the new regulation. This official confirmed that he was impressed with the new regulation would help a huge deal. According to him, it would make the issuance of the tokenized securities and digital shares possible.

Several market observers have expressed great optimism in the project. However, we will just have to wait and see.