Bank of Thailand builds blockchain solution to make real-time settlement between banks possible

According to Coindesk's May 8 report, the Bank of Thailand (BoT) has advanced its digital currency project by building a blockchain-based solution.

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Thailand's central bank's technology partner Wipro announced the news on Wednesday and said the blockchain solution will facilitate the Bank of Thailand and eight other commercial bank partners to use the digital currency for inter-bank transaction settlement.

As part of the Bank of Thailand’s digital currency project lnthanon, the Bank of Thailand and Wipro have jointly built the above blockchain model. Wipro and blockchain enterprise software company R3 provide related development services on the Corda platform.

The solution will enable faster payments through the use of central bank digital currency (CBDC) and enable decentralized interbank real-time settlement (RTGS).

Wipro said:

The prototype has successfully demonstrated that distributed ledger technology (DLT) enables uninterrupted (24/7) interbank settlement and significantly increases payment efficiency.

The Bank of Thailand first disclosed the project in June last year when it said it was trying to create a blockchain-based cryptocurrency to make interbank transactions faster and cheaper.

At the same time, in August last year, the Bank of Thailand further stated that the ultimate goal of this effort is to “improve the efficiency of the infrastructure of the Thai financial market”.

Bank partners for the project include Bangkok Bank Public, Krung Thai, Siam Commercial Bank, Standard Chartered Bank (Thailand) and HSBC.

In addition, the Bank of Thailand also revealed that it is conducting a proof of concept for another distributed ledger technology, which is designed to improve the efficiency of government bond sales.