Bank of Thailand announced Inthanon digital currency project

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Thailand's central bank logo is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/JorgeSilva/File Photo

While Central Bank of Myanmar was trying to solve the American dollar demands in the currency market in this month,Bank of Thailand  started one step ahead of ASEAN’s banks like Singapore.The Bank of Thailand,Thailand’s central bank,announced on August 21st its digital currency(CBDC) project called Inthanon.

In 2017,digital currencies based on blockchain tecchonology business boomed,and the word ‘fintech’ was also well-known all over the world. And also bitcoin,the father of cryptocurrency based on blockchain tech,was porpular,and trading of Initial Coin Offering called ICO mushroomed all over the world.As a result, the price of bitcoin also rocketed to the highest in the end of 2017,and governments and financial officials around the world including Wallstreet were worried about it.Moreover,some news of frauds are occurred in illegal digital currency exchanges of Japan and South Korea.Now most of the governments starts to learn what the digital currency is and how to apply it in their financial services in future.Even some governments launched their own digital currency as they knew the future of it.

I think most of Myanmar people has never heard tell of bitcoin,blockchain and fintech yet.But I heard that ICO trading business In Thailand and Vietnam started illegally last year.I don’t know clearly how Myanmar banking officials and authorities think about it.A few Myanmar newspapers published articles about it written by so-called economists last year,but they only focused on illegal sides of bitcoin and ICO tradings.They could not point out the future and benefits of blockchain.

Thailand adopted the country’s first cryptocurrency regulation on July 16. The Thai Securities and Exchange Commission (SEC), the country’s main crypto regulator, has legalized seven cryptocurrencies and is currently reviewing applications from companies wanting to operate crypto businesses in the country. According to the regulator, about 50 ICO projects are interested in applying for a license, along with five ICO portals and 20 crypto exchanges.Now the central bank of Thailand has green-lighted commercial banks’s subsidiaries for crypto activities.Wow!We should learn why they can embrace a new thing such as financial technology.I think they know they cannot beat it, so they cooperate and develop it for their country’s gain.They are open-minded and  we should learn it.

Following the adoption of the regulation, the central bank of Thailand is working on its own digital currency in collaboration with the country’s largest eight commercial banks.They are Bangkok Bank, Krung Thai Bank, Bank of Ayudhya, Kasikorn Bank, Siam Commercial Bank, Thanachart Bank, Standard Chartered Bank (Thailand) and Hong Kong and Shanghai Banking Corporation (HSBC).

The Inthanon initiative will cover the design, development and testing of fund transfers between financial institutions through the use of digital currency. It is expected that the first phase of the project will be completed within the first quarter of 2019.The central bank of Thailand noted that its project is similar to those currently in development by other central banks such as the Bank of Canada, the Hong Kong Monetary Authority, and the Monetary Authority of Singapore.

Nowadays,the world is teeming with new things and new computer technologies changing rapidly.As a result of blockchain technology,fintech can be used more easily in financial services in the developed countries.Myanmar,a fast-growing developing country in ASEAN,also needs to learn how we can apply the new computer technologies in building a developed country.We have to upgrade our higher education system to a research and development based education system.Thailand and Singapore could launch a modern fintech services like digital currencies.When and how about in Myanmar?We expect our country will be able to grasp the better opportunities in the near future.

Ref:Investopedia

 

 

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