The central bank of Thailand has hired German tech company Giesecke + Devrient (G + D) to develop a prototype government cryptocurrency for retail payments.
According to procurement information released by the Bank of Thailand, the regulator selected Giesecke + Devrient to develop a proof of concept for a government cryptocurrency for retail payments. The Central Bank allocated 10 million baht ($ 320,000) for the project, including taxes, registration fees, transportation and other expenses.
Retail government cryptocurrencies differ from wholesale ones in that they expand the capabilities of the national currency in the field of payments, while wholesale ones refer to the infrastructure of interbank settlements.
The involvement of an international technology provider in the project indicates that the Bank of Thailand continues to move towards the goal of launching a state-owned cryptocurrency within three to five years. In April, the regulator opened a public discussion of the launch of the state digital currency and its capabilities, which will last until June 15.
Recall that last summer, the Central Bank of Thailand began testing the digital currency with large financial institutions, and in September planned to test it in conjunction with the Hong Kong Monetary Authority.
Other regulators around the world are also exploring the concept of a government cryptocurrency. Recently it became known that the Central Bank of Sweden is collaborating with the commercial bank Handelsbanken to test the digital krona and the possibility of processing payments in the state cryptocurrency.
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