As Venezuela struggles with its new currency, tied to crypto, Thailand takes first steps towards its own national cryptocurrency…
The last week has seen less-than-positive headlines emanating from Venezuela, with the country battling hyperinflation by overhauling its national currency, and devaluing it in the process. Its national currency is now pegged to the nation’s own cryptocurrency, the Petro, that Venezuela has been ramping up over the past months.
Just a handful of countries have thus far adopted a central cryptocurrency, but it now looks as thought Thailand is about to follow suit. The Bank Of Thailand has announced that it’s undertaking a proof of concept trial for what’s called Project Inthanon. This is a project that involves eight different Thai banks on top of the Bank Of Thailand, and a technology partner as well.
The project is investigating a wholesale central bank digital currency, and the initial stage of this is set to be completed by March of next year. After that, assuming all goes well, the Bank Of Thailand will look to introduce a cryptocurrency primarily for transactions between banks, and longer term, cross-border funds transfer. It doesn’t look as though Thailand is exploring this being in any way a consumer currency, but presumably that’s an option should things world out well.
“The outcome and insights from Project Inthanon will contribute to the design of Thailand’s future financial market infrastructure”, reads the official announcement, with “operational efficiency” looking very much like one of the key aims.
The project is underway now, and expect to hear of its progress one way or another early next year.