Thailand’s central bank is in no rush to launch a digital currency as it is still unsure about the benefits it will bring. Developing a state-issued coin could take years, according to the head of the monetary authority.
Thailand’s central bank wants to better understand the risks of central bank digital currencies
Bank of Thailand (bot) plans to spend more time to complete the development of a retail central bank digital currency (CBDCs). Monetary policy regulators aim to ensure that this version of the national fiat currency brings additional benefits to the nation’s financial system under adequate risk management.
Many central banks, including the Central Bank of Thailand, are developing retail CBDCs, but have yet to fully implement them. According to BOT Governor Sethaput Suthiwartnarueput, retail CBDC development is expected to take more than five years to reach the market.
On Friday, the chief executive explained that the bank wanted to better understand the benefits and risks of retail CBDCs, especially if there are additional benefits with respect to Promptpay, the country’s digital payment system. “I haven’t seen anything,” said the governor. Sesaput also stressed that digital currencies should eventually change the nation’s financial system and benefit everyone.
The Bank of Thailand is working with three financial institutions and around 10,000 retail users to conduct limited-scale tests of the digital currency in real-world applications. As part of the pilot project, CBDC will be used for cash-like payments for goods and services in a pilot phase due to start later this year. BOTs are also looking at innovative use cases and new financial services.
In parallel, Thailand’s central bank is also working with the Hong Kong Monetary Authority, the United Arab Emirates Central Bank and the People’s Bank of China to develop a wholesale digital currency as a participant in the Mbridge project. and the Bank for International Settlements. His multiple CBDC distributed ledger platforms are designed to facilitate cross-border payments in state-issued digital currencies.The group is already the first in the project pilot.
Do you think it will take longer for other central banks to follow Bank of Thailand’s example and bring retail CBDCs to market? Let us know in the comments section below.
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