Thailand is actively pursuing its central bank digital currency project. The Thai Central Bank has recently revealed that it will be testing its digital currency from late 2022 to the middle of the next year. This digital currency will serve as an alternative payment method for the people. The currency could potentially serve as a payment method for goods and services to 10,000 retail users and three companies.
Moreover, the Thai Central Bank has said that it “recognizes the importance of CBDCs as a novel financial infrastructure.” The bank is also aiming to extend the scope of the Thai CBDC experiment. It will analyze the real-life application of CBDCand consider its use in the private sector. However, the use of CBDC in the private sector will be kept to a limited scale.
Thai CBDC Will Open New Crypto Gateways in the Country
The test phase of Thai CBDC carries immense importance for the crypto community of Thailand. It shows that the country is deeply invested in utilizing the new technology and its scope. Moreover, Thailand believes that technology can reap several benefits in the longer run.
Additionally, the pilot phase of CBDC housing will incorporate two plans. Firstly, the Foundation Track and then the Innovation Track. Through the first plan, the bank will focus on the efficient and safe use of the technology that will back the CBDC. This category will target payments for goods and services.
On the other hand, the innovation track will target the programmability of the service. It will focus on the development of innovative use cases for the currency. It will also aim for offering a new wider range of financial services to the consumers. Nonetheless, private and public sectors will be able to participate in a hackathonand selected teams will receive mentorship.
Thailand has been shifting its crypto stance with time. Previously, there were talks about new regulations in the sector. This has led to a delay in the plans of Thailand’s oldest bankwhich was aiming to acquire an exchange. On the other hand, the head of the Thai central bank believes that there are plenty of other payment optionsand there is no urgency for a CBDC.
Taxes on crypto transactions in the country have also been delayed till 2024. Thus, there is not enough clarity on the crypto plans of Thailand. However, it is evident that the country is warming up to crypto and this upcoming CBDC test will mark a new beginning.