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Central Banks

Bank of Thailand confirms their digital currency is in use

Transacting with Businesses

As a wave of central banks from around the world have joined the race of turning their fiat currencies digital; via central-bank issued digital currencies (CBDCs), Thailand seems to take the lead.

In a report by The Nation (Thailand), the Bank of Thailand (BOT) assistant governor, Vachira Arromdee, confirmed that the central bank is already using the digital currency for transactions with some big businesses.

CBDC Development

BOT also confirmed that they have entered the third-phase in the rolling out process and in September of this year they will begin using the currency to transact the Hong Kong Monetary Authority. Assistance governor stated: “The central bank is also thinking about expanding use of the cryptocurrency to the general public, but a comprehensive study must be completed before taking such action.

CBDC vs Crypto

Though the public links the two for being digital, a comparison cannot be made. All CBDCs are merely a digital version of the existing centralised fiat currencies. Although they leverage the power of blockchain, they do not have the same properties.

Cryptocurrencies such as Bitcoin are permissionless and decentralised, meaning there is no central authority responsible for minting the asset nor a central authority that can control who can have access and under what circumstances.

For those two reasons, the comparisons made between CBDCs and Crypto are invalid.

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