Thailand's Central Bank Extends Retail CBDC Study to Pilot Phase
The Bank Of Thailand still says it doesn't plan to issue a retail digital currency.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/SFILQQGX7FHXDJXSO66FO74X34.jpg)
Bangkok (Florian Wehde on Unsplash)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
The Bank of Thailand, the nation's central bank, said Friday that it is starting a pilot study of a retail central bank digital currency (CBDC).
- The central bank said in an announcement that it "deems it necessary to extend the scope of retail CBDC development to a pilot phase." However, it also reiterated its stance that it doesn't have plans to issue a retail digital currency.
- Vachira Arromdee, a deputy governor at the bank, noted in the release that central banks around the world were seeing "the potential of retail CBDC as being the foundation of the future financial system."
- The latest pilot program would be in addition to previous wholesale CBDC projects and the proof-of-concept study for a retail CBDC that were conducted with help from private companies.
- The pilot phase will test real-life application of a retail CBDC and will be conducted with the support of the private sector. This will help the Bank of Thailand form related policies and improve the CBDC design, the announcement said.
- The first of two tracks of the study will assess "the system's efficiency and safety" by "conducting cash-like activities, such as paying for goods and services, within limited areas and scale of approximately 10,000 retail users selected by the bank."
- This first track is expected to begin at the end of 2022 and last until mid-2023.
- Previously, the Bank of Thailand said that it "don't use crypto for payments," and Thailand's Securities and Exchange Commission banned the use of crypto as a means of payment as of April 1.
Read More: Thailand Bans Crypto as Means of Payment
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.