Thailand launches digital currency – CBDC pilot project

Last Updated on August 11, 2022 by aicrypto

The development of Thailand’s own central bank digital currency (CBDC) is to enter a decisive new phase this year. In a trial run under real conditions, payments for goods and services are to be processed with the CBDC.

This trial run is expected to involve 10,000 retail customers and 3 retail companies.

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The main focus of this trial run will be on the security and efficiency of payment processing. Likewise, new, innovative application areas for a digital central bank currency are to be developed and tested.

Thailand split on digital currencies

This move by the Thai central bank comes as something of a surprise, as the Thai government’s attitude toward digital currencies has so far been one of rejection, prohibition and overregulation.

It is surprising that Thailand, of all countries, is now turning on the turbo.

The current increased activity of the Thai central bank raises the hope that Thailand has recognized the importance of new payment methods and believes in the advantages of this technology.

Hopefully, this will not be followed by another backward roll

As recently as April this year, Thailand’s Ministry of Finance came up with a wide range of complicated regulations on digital currency trading, which led to a stifling of the crypto market in Thailand.

This regulatory frenzy also led to Thailand’s oldest bank SCB putting its purchase of major cryptocurrency exchange Bitkub on hold for the time being.

Real-world pilot program

The pilot program, to be launched later this year, will have two priorities, named Foundation Track and Innovation Track by the Thai central bank.

The Foundation Track will examine the security and efficiency of payment processing. For this purpose, 10,000 retail customers and 3 companies were selected to then make payments for goods and services with the CBDC.

In contrast, the Innovation Track focuses on the programmability of the central bank digital currency and the development of innovative application areas for the CBDC.

This is expected to result in the development of new financial services, which will lead to a wide range of customers for the CBDC.

Digital central bank currencies on the rise

Pretty much all central banks from all major countries worldwide are working on digital central bank currencies. That such digital currencies will have an important role in the future of global finance is undisputed. Even the IMF has confirmed the importance of digital currencies.

Many countries are now aware of the need not to miss the boat in this development. Even if the speeds are different, the need for digital currencies is clear to everyone.

It is likely that initially there will be a coexistence between national currencies, national digital currencies and selected significant cryptocurrencies.

Which will bring unprecedented technologies for national and international payments.