Thailand’s central bank unveiled on Thursday plans to build a prototype of a payment system for businesses using central bank digital currency (CBDC), or traditional money but in the digital form being developed by monetary authorities around the world.
The CBDC prototype will be integrated with the procurement and financial management systems of Siam Cement and its suppliers, the Bank of Thailand (BOT) said in a statement.
The project will begin in July and is expected to conclude by the end of the year, BOT said, adding its scope will include conducting a feasibility study.
“The project marks an important step in broadening CBDC’s scope and adoption to wider audiences, starting with large corporates,” it said.
Many central banks are looking into the potential for CBDCs. They differ from cryptocurrencies like bitcoin, which are produced by solving complex math puzzles and governed by disparate online communities instead of a centralised body.