Thailand central bank aims to test its retail digital currency as an alternative payment option for the public in the second quarter of 2022 according to Ms. Vachira Arromdee, Assistant governor.
The CBDC will be tested for cash-like operations on a limited scale, such as payment for goods and services by the central bank, with rising demand, a CBDC might become an alternate payment method in the future as a partial substitute for cash and e-money.
Based on the document “The Way Forward for Retail Central Bank Digital Currency in Thailand,” which was published on 2 April 2021, Arromdee has released research on the consequences of Retail CBDC on the Thai financial industry, as well as public poll findings on the development of Retail CBDC.
The major findings of the study, as well as input from the survey, have been taken into account while developing guidelines for the development and testing of Retail CBDC in a real-world setting. Key points are Implications of Retail CBDC on the Thai financial sector, Survey results, Pilot Test plans.
The BOT will evaluate all of the pilot test’s findings and related risks to ensure that Retail CBDC is advantageous to the public, business sector, and country as a whole, and does not jeopardize future economic and financial stability.
The CBDC will be non-interest bearing and dispersed to the general public through intermediaries such as financial institutions, according to the bank. Previously, the BOT collaborated with several major Asian banks on an initiative to develop a cross-border CBDC prototype.
You Must Read: Bank of Japan plans to enter second phase of CBDC
New to Crypto? Enroll in Cryptocurrency Course at Todayq Education