- Ethereum developer, ConsenSys, will create a Proof of Concept to launch a CBDC prototype with the Bank of Thailand and partners.
- The CBDC (Central Bank Digital Currency) solution to be developed by ConsenSys will use its MetaMask and Codefi products.
In a press release, the Ethereum development company ConsenSys has announced a cooperation with the Bank of Thailand. Its objective is to “explore the potential of blockchain technology” in the development of a Proof of Concept to create a prototype of a Central Bank Digital Currency. The project will be developed in conjunction with the Siam Cement Group (SCG) and Digital Ventures (DV).
DV has a track record of developing blockchain solutions for payment processing. Together with Accenture, they created a platform for efficient payment processing in the construction industry supply chain in Thailand. SCG also collaborated in this project, as one of the oldest companies in the construction sector in the country. The partners built their solution on Corda R3’s framework.
The CBDC project in Thailand is called Inthanon. Its development has been carried out with R3 Corda technology. However, ConsenSys’ announcement seems to indicate that the financial institution will explore an Ethereum-based alternative.
Thailand’s CBDC developed on Ethereum
In that sense, ConsenSys has revealed that it will join as a partner in the development and testing of the CBDC prototype from Thailand. The Hyperledger Besu network will be designed to meet both functional and non-functional requirements for the retail sector, according to the press release.
The company already has one of the most important use cases of the CBDC to “stimulate daily trade” planned. Therefore, the CBDC will be used to make automatic payments and as a support for operations in the Procure-to-Pay (B2P) system developed by DV. The development of the CBDC will use Ethereum’s ERC-20 smart contracts. In this way, “adaptive tokens” can be issued to enable transfers between users on a network.
In addition, ConsenSys revealed that it will partner with Thailand’s blockchain Atato to have the solution use the Enterprise Ethereum stack that includes Codefi and MetaMask. The Director of ConsenSys in Hong Kong stated the following:
A retail blockchain-based CBDC represents a new technology for the issuance of central bank money, where tokenized central bank money is accessible to the general public, and in this case businesses piloting the solution. ConsenSys is thrilled to be a part of this ambitious project to explore a retail CBDC that will allow financial institutions and merchants throughout Thailand to enhance the speed and security of their daily payments infrastructure.
ConsenSys will issue a full report once the development and testing of the Bank of Thailand’s CBDC is completed. With the announcement of China’s digital Yuan in its testing phase, a CBDC in Thailand could serve as a counterweight or alternative in the Asian region.