Central Bank: Thailand CBDC Pilot Could Commence Later This Year

Thailand’s central bank plans to test its digital retail currency as an alternate payment method from late this year to the middle of 2023. The Bank of Thailand (BOT) said it would use retail central bank digital currency (CBDC) during the testing to perform cash-type transactions, like paying for products and services, in specific locations and among roughly 10,000 retail customers. Bank of Thailand to Evaluate Project BOT will evaluate the pilot project’s advantages and dangers to develop pertinent policies and enhance designs. A retail CBDC is a digital currency that resembles physical banknotes issued by a central bank. It applies to both online and offline financial transactions. The BOT stated that due to the dangers involved, it opposes using digital currencies like Bitcoin and Ether as payment. Crypto Becoming More Popular in Thailand Thailand’s position on cryptocurrencies has been a little ambiguous. There were discussions in April 2022 about new rules that might limit the nation’s cryptocurrency economy. The oldest bank in Thailand has postponed plans to buy an exchange due to increased regulatory activity. Thailand’s central bank has been taking its time implementing the CBDC. The bank’s President says there are sufficient other payment options. Banks have also postponed axes on cryptocurrency transactions until 2024. Experiments Using CBDC Top Priority Governments and regulators now consider CBDCs the most crucial...