The Central Bank of Thailand “Bank of Thailand” has developed a country of their own crypto currency and power seem to have been significant progress. Already in the first quarter of 2019, the first Phase of the project is to be completed, the development of a robust method for consensus formation. As the Central Bank in a press statement dated 21. August said, she would like to carry on with the project of technological change in the financial world. For this purpose, the Bank called for partnerships with eight Thai commercial banks, which participate in the development of the digital currency.
The upcoming digital currency is supposed to work, according to the press statement after a “Proof of Concept” method, which is to develop the participating commercial banks and the Bank of Thailand together and test it. Details about the technical design of the process for consensus-building, there is not yet, however. In addition to its development, you want to implement in the first Phase, it is also an approach to Deposit insurance.
The entire Thai financial market is to be transformed
The Name of the project is significant. It is the highest mountain in the country, Inthanon, named. However, its importance for the country. With the project, the Bank does not want to establish not only a new digital currency, but “the entire infrastructure of the Thai financial market to remodel.” The Thai national Bank is, according to the press statement, “in line with the projects of the Central banks of Canada, Hong Kong and Singapore.”
Balance between state centralization and the free crypto-trade
Thailand continues its recent months of course, to open up to digital currencies. Had presented to the country, even at the beginning of the year, much stricter and the banks trade with crypto currencies is prohibited, as it is now, apparently, a u-turn Already in the beginning of August, the Thai Central Bank gave commercial banks the green light to investment in the crypto sector. The planned, state-owned digital currency represents a further milestone in the positioning of the country towards crypto-currencies.
Thailand opts for a middle ground: While crypto-currencies are not banned, but heavily regulated and a piece of thus far, under the control of the state. In this respect, Thailand is perhaps one of the crypto-friendly countries in the world, but can a realistic scenario to offer, such as a regulatory process in other countries.