Thai Central Bank to Trial Retail Digital Currency
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The pilot will initially be conducted on a limited group under the BOT before it is expanded to the public, retail stores, banks and non-banking facilities.
The Bank of Thailand is set to begin testing a retail central bank digital currency (CBDC) in the second quarter of 2022, the central bank said in a statement on Thursday.
The BOT will assess all results and associated risks from the Pilot Test, to ensure that Retail CBDC is beneficial to the public, business sector, and country as a whole, and does not undermine economic and financial stability in the future, Vachira Arromdee, BOT assistant governor, said in the statement.
BOT said public demand for retail CBDC will gradually rise over time and that CBDC could become an alternative payment option in the future.
It cited a public survey and focus group discussions conducted in April 2021, in which most respondents agreed with the BOT’s approach to retail CBDC development and viewed the currency as a beneficial infrastructure open to access and competition, with the potential to foster greater development of a safe financial innovation in the future.
Respondents also agreed that the CBDC design guidelines can help mitigate any negative impacts on the Thai financial sector.
Questions & Answers
Q.When is the Bank of Thailand planning to start testing its retail digital currency?
When is the Bank of Thailand planning to start testing its retail digital currency?
The Bank of Thailand is scheduled to begin testing a retail central bank digital currency in the second quarter of 2022. This pilot will initially involve a limited group under the BOT.
Q.What is the purpose of this initial pilot test for the retail CBDC?
What is the purpose of this initial pilot test for the retail CBDC?
The Bank of Thailand will assess all results and associated risks from the pilot test. This is to ensure the Retail CBDC benefits the public, business, and country, without undermining stability.
Q.What did the public survey and focus group discussions reveal about retail CBDC?
What did the public survey and focus group discussions reveal about retail CBDC?
Most respondents agreed with the BOT's approach and viewed the currency as beneficial infrastructure open to access and competition. They also thought the design guidelines could mitigate negative impacts on the financial sector.