The Bank of Thailand (BoT) has partnered with German technology company Giesecke + Devrient (G + D) to create a central bank issued digital currency (CBDC). A report released this news earlier today, noting that the central bank had acquired G + D’s services after issuing an invitation letter to the company. BoT has reportedly set aside $ 320,000 (£ 226,568) for this project.
According to the report, the aforementioned amount should cover taxes, transportation and registration fees, among other expenses. Through this move, the central bank has moved closer to its mission of issuing a CBDC in the next three to five years. While BoT did not disclose why it partnered with G + D for the development of its proof-of-concept (PoC) CBDC, it is likely because the company has been in the CBDC development space for quite some time.
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This news comes after BoT partnered with ConsenSys, Siam Cement Group, and their Digital Ventures (DV) subsidiary in 2020 to implement a retail CBDC. In April this year, BoT Deputy Governor Vachira Arromdee announced that the bank had begun accepting public comment on its retail CBDC through June 15.
In addition to fiats and CBDC
G + D leverages its Filia solution to help simplify the launch of CBDC. According to the company, Filia offers privacy to users and meets central bank compliance requirements. As such, the solution kills two birds of the same stone as it offers cryptocurrency privacy and helps central banks thwart money laundering or tax evasion. Apart from this, Filia also offers central banks the option to choose between using a centralized database or the blockchain for their CBDCs.
While G + D has made a name for itself in the CBDC space, its core business is helping central banks manage banknotes. This business unit reportedly accounted for 45% of the company’s revenue of $ 2.8 billion (£ 1.98 billion) in the past year. The company also has its fingers in mobile security, digital identity, and infrastructure security. Combined with CBDC’s expertise, these characteristics easily attract central banks to work with the company.
While Thailand is ranked 25th, relative to GBP, its CBDC investigations are quite significant. At the moment, a large number of leading nations, including the US, do not have solid CBDC plans. Apart from Thailand, only a handful of other countries in the world are testing CBDC, and China and Sweden achieved major milestones.
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