SCG to pilot Thailand’s first implementation of central bank digital currency (CBDC)
published : 18 Jun 2020 at 21:24
Signs MoU with Bank of Thailand and Digital Ventures to develop prototype system aimed at boosting competitiveness and fintech
SCG has announced that it has signed a memorandum of understanding (MoU) with the Bank of Thailand and Digital Ventures to develop a prototype system of Central Bank Digital Currency (CBDC) to enhance the efficiency of purchasing and payment management in the business sector. The CBDC is being developed to reduce transaction steps and processing time, which will be conducive to boosting business confidence and competitiveness and promoting Fintech innovation in the future.
Mr. Thammasak Sethaudom, Vice President – Finance and Investment & CFO, SCG, said, “SCG is pleased to work with the Bank of Thailand and Digital Ventures to optimise digital technology in business operations and initiate the development of the Central Bank Digital Currency system which is vital for the country’s economic development. Prior to this, SCG has partnered with Digital Ventures, a leading fintech venture capital firm, and adopted its Blockchain Solution for Procure-to-Pay (B2P) since 2018 to speed up procurement, invoice, and payment processes. The platform helps shorten the overall procurement processing time by 50% and reduces cost per transaction by 70%. As a result, to date, over 4,500 business partners are on this platform within two years.”
“The MoU with Bank of Thailand and Digital Ventures to collectively develop the prototype system of Central Bank Digital Currency (CBDC) is a significant milestone in boosting competitiveness for organisations and business partners and improving the payment infrastructure for the business sector in the future.”
“In this regard, the signing of this MoU is in line with SCG’s vision of creating innovations to fulfil needs and rapidly changing customers’ behaviours, especially now with the ‘New Normal’ business landscape. The company has pushed forward the digital transformation by accelerating its capability and using digital technologies in business activities as well as facilitating open collaboration with leading organisations, specialised partners to together learn and develop technologies, processes, and products.”