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Bank of Thailand Preps Real-World Test of Digital Currency

Thailand CBDC Bank Central Crypto Currency Digital

The Bank of Thailand intends to try a limited, real-world test of its digital currency, or CBDC, in the second quarter of 2022.

Bank of Thailand Deputy Gov. Vachira Arromdee said the BoT has studied cryptocurrencies since 2018, as it realized the potential benefits to be had for the future development of Thailand’s digital currency.

She said the central bank plans to do a limited, real-world test of its CBDC digital currency in order to study its use in transactions and payments for goods and services.

The limited test is scheduled for the second quarter of 2022, during which businesses and developers will also be involved in the test. The participation model and the criteria for participant entities are being determined.

Dong He, deputy director of the Monetary and Capital Markets Department, International Monetary Fund, said the central banks of every nation need to play roles in designing and regulating the use of CBDC.

The objective was to maintain the stability of the financial system as well as the robustness of currency value, in contrast to privately issued cryptocurrencies whose values were volatile.

Siam Commercial Bank President Arak Sutivong expressed his belief that the collaborative creation of a digital money system by the public and private sectors will produce a system that can handle much more than payments. He gave examples of lending and international money wiring, saying transformation toward digital finance is a global focal point at present.