Bank of Thailand expands CBDC to retailers, says big businesses are already using

The Thai Central bank announces testing of CBDC for corporate transactions. It further aims at launching the state owned digital currency for retailers

By · Jul 17, 2020 . 6min read

Image by Peggy und Marco Lachmann-Anke from Pixabay

Thailand’s central bank is all set to offer it’s central bank digital currency to retailers. According to Bangkok Post, Bank of Thailand is already prepping up to test its digital currency with corporate entities. Thereafter it will work towards the next development phase to launch it for retailers.

With countries like China and Japan working on state-owned digital currencies, Thailand’s decision to explore opportunities in the crypto space is no surprise. By adopting CBDC’s, countries aim to make crypto available to masses. However, at the same time, nations’ greater motive is to monitor the usage of digital currencies and exercise control.

“Thailand’s central bank has been paying attention to new financial innovations after testing a CBDC prototype payment system for wholesale business under the distributed ledger technology (DLT) of Project Inthanon”

said Vachira Arromdee, Assistant Governor for the financial market group, Thailand

The Assistant governor further stated, “By moving into the retail market, [CBDC] could lead to a major disruption of the overall financial market and financial stability, while the role of financial institutions could be changed.” The former also stressed upon the central bank’s further plans to make digital currency available for individuals. This will open a whole lot of opportunities for individuals to innovate in the digital financial ecosystem.

Two Central Banks unite for crypto adoption

BOT has also collaborated with eight local banks for the adoption of the state-owned digital currency. Moreover, The Hongkong Monetary Authority will be instrumental in testing cross-border corporate transactions for Thailand’s central bank. This will further lead to collaboration between central banks, aiming to diversify the platform.

Thailand plans to adopt it’s CBDC systematically. Hence there are different phases in with the digital currency adoption will take place. The Thai Central bank aims to finalise things by the end of the year, thus giving a coherent view of the adoption.

The Bank of Thailand is constantly discussing the launch of Facebook’s Libra. The former is keen on the adoption in Thai markets. However, with existing stringent regulations and policies, the adoption of digital currency Libra is tentative.

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