The Bank of Thailand to Launch Retail CBDC This Year End

The Bank of Thailand to Launch Retail CBDC This Year End

  • Only a small number of people will be chosen to participate in the assessment.
  • CBDC retail is the digital form of money or currency distributed by the Central bank.

If everything goes according to plan, Thailand’s central bank, the Bank of Thailand (BOT) will begin testing central bank digital currency (CBDC) by the end of 2022 or early in the following year. BOT emphasized that central banks throughout the world are focusing their efforts on developing the Retail CBDC.  In the future, the financial and banking system will be built on digital money supported by a central bank, according to this concept.

Bloomberg reported that the BOT has not issued a strategy for the retail distribution of CBDC. Tests are being conducted as part of an evaluation of the product’s technology and design viability. Only a small number of people will be chosen to participate in the assessment.

Weighing in on CBDC

As an alternate payment method for cash-like purchases, CBDC will be utilized instead. According to the disclosure, the BOT has chosen around 10,000 retail customers as well as three enterprises. The Thai central bank has chosen the Bank of Ayudhya, Siam Commercial Bank, and 2C2P.

CBDC retail is the digital form of money or currency distributed by the Central bank. Because it may be delivered and received both offline and online, it has a wide range of applications. BOT, on the other hand, opposes the usage of digital assets. Using Bitcoin and Ethereum to pay for services is no longer an option for the bank because of the inherent dangers.

Despite the instability surrounding the Singaporean exchange Zipmex, which banned withdrawals for consumers in the nation in July, the Securities and Exchange Commission (SEC) of Thailand issued operating licenses to four digital asset providers on August 4. Bullish enthusiasm in the crypto market had a significant impact on Thailand’s cryptocurrency volume in early 2021.

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