The Bank of Thailand, the country’s central bank, stated on Friday that a pilot project was being conducted to increase the potential for the growth of retail central bank digital currency (CBDC).
The usage of cryptocurrency as a form of payment has been outlawed beginning on April 1, 2022, as stated earlier by the Bank of Thailand and the Thai Securities and Exchange Commission.
It was said in a statement by the central bank that it “deems it necessary to extend the scope of retail CBDC development to a pilot phase.” It also maintained its position while announcing that it has no plans to establish a retail digital currency. In the press release, Vachira Arromdee, the deputy governor of the Bank of Thailand, stated that central banks all over the globe saw “the potential of retail CBDC as being the foundation of the future financial system.”
The most recent test program would be in addition to earlier wholesale CBDC initiatives and the retail CBDC proof of concept study being carried out with the support of the corporate sector.
The first of the pilot’s two tracks will be used to perform cash-like activities, such as paying for products and services, within constrained locations and a scale of around 10,000 retail customers designated by the Bank in order to evaluate the system’s efficiency and safety.” This initial track is anticipated to start at the end of 2022 and run through the middle of 2023.
It will be tested in real-world settings during the pilot phase, which will be carried out with the help of the private sector. According to the release, this would assist the Bank of Thailand in developing appropriate policies and optimising the CBDC design.