Bank Of Thailand To Launch Its Own Cryptocurrency On Corda Centralized Blockchain Of The R3 Consortium

The Central Bank of Thailand announced its plans for the issuance of a national cryptocurrency on Corda blockchain of the R3 consortium for a centralized issuance. The project aims to facilitate interbank arrangements throughout the region. The press release, issued by the financial institution on August 21st, indicates that the project is called Inthanon and is a “collaborative milestone” for the entire nation, as it brings together eight of Thailand’s most recognized banking agencies and public companies.

The cryptocurrency, which will be known as the Central Bank’s Digital Currency (CBDC), will specialize in making interbank arrangements and savings bonds throughout the region, using the Bank of Thailand as the central entity.

“The BoT and the participating banks will design and develop a collaborative prototype proof-of-concept for the wholesale transfer of funds through the wholesale issuance of Central Bank Digital Currency (wholesale CBDC). The prototype will be built on Corda, a DLT platform developed by R3 consortium,” stated the Central Bank of Thailand.

Bank of Thailand to launch the national cryptocurrency CBDC on Corda centralized blockchain

Corda is one of the most popular centralized business blockchain technology in the ecosystem. The platform is an open source tool that is centrally managed. In other words, their nodes are private and controlled by the company, a modality that is harshly critical for the community because it goes against the idea of decentralization that many in the cryptocurrency community still defend.

In this sense, all native cryptos on this blockchain are managed, issued and supervised by a central entity, making it an advanced technological tool, but not an innovative financial project since it does not depart from the business model of traditional banking.

Some consider that, although the project of the Central Bank of Thailand is positive for the adoption of cryptocurrencies at the international level, the Central Bank’s Digital Currency (CBDC) will not be a cryptocurrency running on a public blockchain, but rather “a digital fiat,” that is a replacement of a national currency in a digital format.

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About the Author: Anna Galvez

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