Thailand’s central bank (BOT) has declared that it will devote more attention to research and development of its central bank digital currency (CBDC).
Several central banks, including Thailand’s, have been creating retail CBDCs but have yet to completely deploy them, according to an article in the Bangkok Post. According to BOT Governor Sethaput Suthiwartnarueput, reported by the newspaper, retail CBDC development will take more than five years until market opening.
On Friday, the bank’s chief executive stated that the bank wants further to understand the benefits and hazards of the retail CBDC, particularly whether there are any extra benefits related to Promptpay, the country’s digital payment system.
The governor stated that the central bank has yet to witness such. Sethaput also stated that a digital currency would eventually revolutionize the country’s financial structure and benefit everyone.
The Bank of Thailand is working with three financial institutions and 10,000 retail customers to perform small-scale tests of its digital money in real-world applications.
During the trial phase, which is set to begin at the end of this year, the CBDC will be used for cash-like payments for products and services as part of the pilot project. The BOT is also investigating new financial services and unique use cases.
In parallel, Thailand’s central bank, along with the Monetary Authority of Hong Kong, the Central Bank of the United Arab Emirates, the People’s Bank of China, and the Bank of International Settlements, has been working on the development of a wholesale digital currency as a participant in the mBridge project.
The CBDC distributed ledger technology enables cross-border payments using state-issued digital currencies. The first pilot of the project has already been completed by the organization.
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