Central Bank of Thailand will test the digital currency of the Central Bank during 2022

The Central Bank of Thailand (BOT) believes that the phased launch of the state digital currency will be more efficient. Public testing will take place in the second half of 2022.

Deputy Director of BOT Kasidit Tansanguan at a press conference
reportedthat after discussions with stakeholders and careful consideration of the issue, Thailand has decided to gradually implement a government digital currency.

“Thailand should gradually move towards retail use of CBDC in order to do it efficiently and prudently, as it has problems with transfers and payments like in other countries.”

He added that the launch of the state digital currency is not intended to compete with cryptocurrencies or stablecoins, but is aimed at reducing financial costs. According to him, a pilot project, which is scheduled for the second quarter of 2022, will evaluate the use of digital currency as a means of payment on a limited scale. Then, in the second half of the year, open testing will begin. The regulator clarified that the pilot tests of the digital currency of the Central Bank will include deposits, withdrawals and transfers of money between financial institutions. It is planned that the tests will involve about 10,000 users.

The Central Bank of Thailand is quite loyal to cryptocurrencies in comparison with the Central Banks of other countries. At the same time, he tries not to rush to the development of standards for the regulation of cryptocurrencies, relying on the experience of other countries. Thailand’s Central Bank Governor Sethaput Suthiwartnarueput recently announced that he will submit an updated advisory document to regulate cryptocurrencies in early 2022.

The central bank of Thailand said this month that it does not prohibit the use of digital assets for trading, but is concerned about their impact on the country’s financial system. Therefore, the regulator insists that banks should stop using cryptocurrencies, since volatility in the digital asset market directly affects the economic situation in the country.

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