Bank of Thailand Needs More Time to Complete and Launch Retail Digital Currency – The Bank of Thailand (BOT) will require additional time to finish the development of its central bank digital currency for retail use. Under adequate risk management, the monetary policy regulator seeks to ensure that this form of the national fiat currency would provide additional benefits to the country’s financial system.
The Bangkok Post reported that a number of central banks, including that of Thailand, have been designing retail CBDCs but have yet to completely deploy them. The BOT Governor, Sethaput Suthiwartnarueput, was quoted in a daily as stating that the retail CBDC development will take more than five years prior to market opening.
People Also Read: National Bank of Kazakhstan to Integrate Digital Tenge With BNB Chain
The chief executive indicated on Friday that the bank wishes to gain a deeper understanding of the benefits and hazards of the retail CBDC, and in particular whether Promptpay, the country’s digital payment system, offers any further benefits. The central bank has not yet encountered such an event, the governor stated. Sethaput also underlined that a digital currency should ultimately alter the country’s financial system to everyone’s benefit.
The Bank of Thailand is cooperating with three financial institutions and approximately 10,000 retail users to test its digital money in limited-scale real-world applications. During the trial phase of the pilot project, which is expected to commence by the end of this year, the CBDC will be used for cash-like purchases of goods and services. Additionally, the BOT is considering innovative use cases and new financial services.
In parallel, the central bank of Thailand has been collaborating with the Monetary Authority of Hong Kong, the Central Bank of the United Arab Emirates, the People’s Bank of China, and the Bank for International Settlements on the development of a wholesale digital currency. Multiple CBDC distributed ledger platforms are intended to facilitate international payments with state-issued digital currencies. The team has already finished the first pilot for the project.
READ MORE
IRS Updates Crypto-Related Instructions for 2022 Tax Filing
Federal Reserve Chairman Jerome Powell Faces Political Pressure Over Interest Rate Hikes
