The cryptocurrency will focus on the development of inter-bank arrangements and savings bonds in the country
The Central Bank of Thailand revealed that they are planning to issue a nationally-managed cryptocurrency, in order to facilitate the exchange of inter-bank transactions in this region, and that the cryptocurrency will be hosted in Corda, a model of distributed accounting ledger platform, created by the R3 Consortium, especially to administer financial agreements between regulated financial institutions.
The bank announced the decision through a press release published on August 21st, where they specify that the project will be called Inthanon, which they believe will mark a before and an after in the country’s banking history, as it will gather eight banking agencies and renown public companies in the country.
The cryptocurrency will focus on the elaboration of interbank arrangements and savings bonds throughout the region, using the Bank of Thailand as a central entity and which will be called the Digital Currency of the Central Bank (CBDC).
The central banking entity also revealed that in the coming months of 2018 all the agencies involved will be working on the design and development of a wholesale bank transaction prototype, guaranteeing that settlement operations can be multiple and instantaneous thanks to the technology of the centralized blockchain of Corda.
Corda, a centralized blockchain
The case of the Corda blockchain is particular and unique within these new platforms, it is an open source tool that is managed centrally. This means that their nodes are private and operated by the company, which has generated discrepancy in entities and investors related to the matter, because this base doesn’t match the main decentralized concept of most blockchains.
Any cryptocurrency created in this blockchain will be managed and controlled in a centralized manner by a single entity, which achieves significant advances in the technological area, but not in the financial model, due to its resemblance to traditional banking.
For some experts, although the plan of the Central Bank of Thailand for the creation of other cryptocurrencies at an international level is attractive, it must be taken into account that a cryptocurrency will not be generated in a public blockchain, but a “digital fiat” that refers to the supplanting of a national currency into a digital format.
During the next few months we will see the development of the project and its acceptance in the market, as well as the interest of the Central Bank of Thailand towards the recent attention that has been set by governmental entities and large companies in the creation of effective laws to work in this digital environment.