Bank Of Thailand – Billionaire365

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.

Anna Galvez

Bank of Thailand Permits Local Banks to Establish Subsidiaries for Cryptocurrencies-Related Businesses

The Bank of Thailand (BoT) has just enabled local banks to establish subsidiaries to deal with cryptocurrencies, according to the local news agency, the Blognone. According to a regulatory notice issued by the Bank of Thailand on August 1st, Thai banks can migrate to digital assets, offer crypto-related brokerage solutions, operate cryptocurrencies businesses and conduct investments in cryptos via subsidiaries.

Nevertheless, the latest news has confirmed that all banks and other financial institutions are still prohibited from trading directly in cryptocurrencies.

While banks are currently authorized to set up subsidiaries to operate with cryptocurrencies, such branches are not eligible for the provision of cryptocurrency-related products to their clients and the general public, and can interoperate only with other firms that are accredited by the Thai Securities and Exchange Commission (SEC) and the Office of the Insurance Commission (OIC).

Crypto-related subsidiaries should not counsel clients to invest in cryptocurrencies or buy cryptos with credit cards, the Bank of Thailand stated

Branches are authorized to make investment funds accessible to clients, except if they are willing to invest in digital assets that are intended to encourage “financial innovation” or expand the value of financial services, in which case they may use the Bank of Thailand (BoT) regulatory sandbox.

Earlier in 2018, the Bank of Thailand published a directive banning Thai banking entities from trading and investing in cryptocurrencies and engaging in the setting up of cryptocurrency exchanges, which are allegedly legitimate to do business across Thailand.

Also, the Bank of Thailand demanded banks not to counsel individuals about investment or trading in cryptocurrencies, and ban clients from purchasing cryptos with credit cards.

At the beginning of June, the Bank of Thailand unveiled that it is looking to deliver a “new way of carrying out an interbank settlement” through the use of a digital asset issued by the central bank, the CBDC. The adoption of its own cryptocurrency should lower transaction fees, as well as transaction and validation times “due to the reduced intermediation process required compared to current systems,” as the bank reported.

Anna Galvez