Central bank digital currencies (CBDCs) are increasingly gaining traction in the global financial system. Although it is still the early days, an increasing number of central banks globally are working on developing and issuing their CBDCs. Thailand’s central bank intends to test its retail CBDC by next year.
Thailand to pilot retail CBDC by next year
Thailand’s central bank said it would test its CBDC by next year. The apex bank made the announcement via a press release yesterday, adding that it is open to accepting public feedback on its retail CBDCs by June 15 this year.
Ms.Vachira Arromdee, Assistant Governor of the Financial Markets Operations Group, Bank of Thailand (BOT), said the country has to look towards digital currencies due to the direction the world is moving.
Arromdee stated that “The BOT’s main objective in exploring Retail CBDC is aimed at providing citizens with access to more convenient and secure financial services. In addition, the development of a Retail CBDC will support a technology-led future that is efficient and cost-effective, and contribute to the development of more diverse and innovative financial services.”
The Bank of Thailand believes the development of a CBDC is crucial since it can alter the financial infrastructure and, ultimately, the country’s financial landscape. Due to its importance, the BOT has to seek the general public’s feedback to give it a general sense of direction in the project.
“It is important for the BOT to seek feedback from the general public, including both the public and private sectors, on the development and issuance of Retail CBDC,” the press release added.
Bank of Thailand joins other apex banks in CBDC development
The Bank of Thailand has become one of the central banks actively developing a CBDC. The central banks globally are researching or developing CBDCs as they look to catch up with the private sector in the digital currency race. The rise of stablecoins has made it crucial for central banks to develop and issue CBDCs as it allows them to be in control of the global financial system.