Thailand Already Using Central Bank's Digital Currency

Thailand's digital currency is backed by the central bank’s foreign currency reserves, which have grown by $25 billion over the past 12 months.

By Paddy Baker

Jul 17, 2020 at 10:29 a.m. UTC

Updated Sep 14, 2021 at 9:32 a.m. UTC

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A senior figure at the Bank of Thailand (BOT) has confirmed the bank is already using a central bank digital currency (CBDC) for transactions with some businesses.

Vachira Arromdee, the central bank's assistant governor, told reporters Wednesday it planned to expand the use of the digital currency among large businesses The Nation reported.
It's unclear what businesses are already using the digital currency; transactions with the Hong Kong Monetary Authority will be conducted with the CBDC from September, Arromdee confirmed.
Thailand's CBDC is backed by the central bank's currency reserves; BOT data shows its foreign currency reserves have grown by more than $25 billion over the past 12 months.
Access to the general public, complete with a state-backed wallet provider, is currently under consideration.
Arromdee said the BOT recognized digital currencies could lower the costs of transactions but is also concerned about how that could disrupt the commercial banking sector.

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