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.

AccessTimeIconAug 5, 2022 at 8:00 a.m. UTC
Updated May 11, 2023 at 4:49 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.




Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies 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 with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Amitoj Singh

Amitoj Singh is a CoinDesk reporter.


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.