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Bank of Thailand began the process of developing its own crypto currency

The central bank of Thailand confirmed its interest in blockchain-technologies and announced the release of its own crypto currency. The project was named “Inthanon“.

The new digital currency will work on the Corda platform. The work related to the research and development of a new currency is entrusted to a working group, in which 14 Thai banks, a central bank and seven state enterprises participate. It is expected that the first stage of the project will be completed by March 2019.

Inthanon tokens will enable the central bank of Thailand to provide faster and cheaper settlements between banks in the domestic interbank market.

In his speech on the economy of Thailand at the financial summit in Singapore on Tuesday, the Governor of the Bank of Thailand, Veeratai Santiprabhob, said:

The Bank of Thailand and banks will jointly develop a new way of conducting inter-bank settlements using the central bank’s digital currency.

According to the head of the bank, the authorities will study the “potential and consequences“ of the central bank’s digital currency to work in the clearing and settlement system before it is launched into widespread use.

In addition, following the statements of Veeratai Santiprabhob, this idea is a consequence of the project involving bonds issued on the basis of blocking technology. It is expected that such a decision will speed up placement of bonds for retail investors from 15 to 2 days.

Nevertheless, according to the Bank for International Settlements (BIS), the crypto currency issued by central banks threatens financial stability. Becoming a competitor to Fiat, it will lead to an increase in interest rates, experts say.

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