According to reports, the pilot will focus on two important factors namely: The Foundation track and the Innovation track.
In a bid to implement a successful Central Bank Digital Currency (CBDC), Thailand conducted a survey last year, and during the publication of the results, it announced that it will commence the pilot phase this year. In a press statement, the Bank of Thailand has confirmed that its CBDC will run from later this year to the middle of 2023.
According to reports, the pilot will focus on two important factors namely: The Foundation track and the Innovation track. The Foundation track takes into account the efficiency and safety of the technology backing the CBDC. Under this category are activities such as payment for goods and services. Three companies and 10,000 retail users have been selected for this mandate.
The Innovation track will on the other hand focus and programmability. This will ensure that the development of innovative use cases of CBDC is facilitated. The hackathon is expected to be participated by both the private and public sectors. As part of the program, the selected participants and teams will receive mentorship.
The pilot is meant to test a real-life application of a retail CBDC. The results will help the Bank of Thailand to come up with related policies and improve on the design.
Deputy Governor of the Bank of Thailand, Vachira Arromdee stated in the release that central banks across the world have seen the potential of retail CBDC as the foundation of the future financial system.
In an interview with local media TNN during the World Economic Forum’s Annual Meeting, 2022 in Davos, Switzerland, Thai central bank governor Sethaput Suthiwartnarueput mentioned that they are not in a rush to roll out the CBDC since there are sufficient payment options in the country.
Regardless of its interest in Central Bank Digital Currency, Thailand’s Security and Exchange Commission announced the ban of cryptos as a means of payment from April 1. According to them, crypto is seen as a tool for money laundering and the Central Bank has failed to assist in its use. Authorities also clarified that the ban does not include crypto trading and the possession of digital assets. According to the Thai SEC, cryptos do not improve the efficiency of the payment market due to their volatility and high transaction fees.