Thailand’s central bank studies the chances of combination of centralized and decentralized assets.
This is revealed in the researches of smart contracts and decentralized finance (DeFi) applications for the country’s digital currency – the digital baht.
Vijak Sethaput, senior developer for the Bank of Thailand’s (BoT) central bank digital currency project Inthanon, discussed the country’s CBDC development during Official Monetary and Financial Institutions Forum.
His colleague Sky Guo, CEO of New York-based enterprise blockchain firm Cypherium, has appreciated his effort and mentioned that countries can get from DeFi model the permission for authorized persons to produce digital assets, secured by tangible assets such as real estate and stocks. He thinks that such policy can increase the economy liquidity.
Sethaput mentioned that Central bank regularly monitors all innovations in the DeFi industry, but reiterated that before the adoption of these innovations into Thai crypto the bank has to decide with two DeFi related issues related to client identification and confidentiality.
The next phase of Inthanon project principal moment is the launching of smart-contracts:
“We have explored functionality of the smart contract like Sky has described. We have mimicked the bond lifecycle, so the bond itself can pay coupons and can exchange between the parties, we have something called repurchase, so you can sell it and then you can get it back in another time and also the trading.”
These comments are among numerous others around the increasing popularity of industry. DeFi is a new instrument permitting crypto businessmen with the possibility to use traditional financial instruments in a decentralized network without monitoring of the companies and governments. The DeFi industry has become extremely popular in 2020, as the companies around the world have inserted lot of money in crypto sector.
Based on the information from DefiPulse.com, for this moment the DeFi markets clocks in at $5.24 billion.
Cointelegraph says that, the Bank of Thailand has already launched its CBDC for financial transactions with large-scale companies.