The Bank of Thailand (BOT) has recently intensified its efforts to finish the development of its central bank digital currency (CBDC). On Saturday, the central bank reportedly announced the putting off of the testing phase of the central bank digital currency (CBDC) for later this year.
The Bank of Thailand is continuing to build a CBDC, but it is required to ensure that it offers “additional benefits to the financial system with good risk management.”
With the mentioned delay, Bangkok Post also reported that numerous commercial banks had also created a retail CBDC, but they have yet to make it public.
This digital currency will be tested by 10,000 retail users for online and offline transactions such fund transfers, deposits, and withdrawals. BOT is working with two commercial banks (Bank of Ayudhya and Siam Commercial Bank) for this testing to ensure the outcomes.
Thailand intensifying CBDC efforts
Regulators in Thailand are also weighing the advantages and disadvantages of the digital baht. Furthermore, they are comparing this digital facility with PromptPay, the major digital payments system in the nation. Deputy BOT director Kasidit Tansanguan stated:
“Thailand can still take a gradual step in the retail CBDC to ensure efficiency and prudence as it does have a problem with fund transfers or payments as some other countries”.
Despite the acceptance of the concept of introducing a national digital currency, central banks continue to express their criticism and skepticism for cryptocurrencies. Central banks have emphasized that CBDC will not replace currency but rather support it.
Tansanguan stated that BOT does not plan to compete with crypto assets or stablecoins, but rather to leverage its CBDC to lower financial expenses.
The Central Bank of the United Arab Emirates is the most recent to finish the pilot program for its CBDC and enters in the list of many countries like Nigeria and the Bahamas which have already begun using it, while some are still testing it out to see how it performs. A trial implementation programme for CBDC is already active in China, Ghana along with Australia where RBA makes further progress in launching its CBDC pilot.