The Central Bank of Thailand is leaving the CBDC pilot plan by the end of 2022

Establishment of the Central Bank of Thailand (BOT) notification on the postponement of the test phase of a digital central bank currency (CBDC) from the second quarter to the end of 2022.

Thailand is testing CBDC later than expected

Thailand plans to use CBDC as an alternative payment option to cash.

While the BOT has not given a reason for the delay, it nonetheless intends to use the pilot to assess progress in using CDBC to complement cash transactions in a limited range of capabilities.

In the pilot phase, several financial institutions and around 10,000 users will test the digital currency for online and offline transactions such as deposits, withdrawals and transfers.

On the issue, BOT Deputy Director Kasidit Tansanguan said that after consulting with relevant partners, the test will be slowed down to ensure effectiveness.

“Thailand can still go one step at a time in the CBDC retail sector to be efficient and prudent as it has transfer or payment problems like some other countries.”

Reduce reliance on cash

With the world going digital now, especially during the Covid-19 pandemic, central banks around the world are looking for ways to reduce their over-reliance on cash.

Some countries have already started using CBDC while others are still in beta to see how it works. However, central banks have found that CBDCs only complement, not replace, cash.

While countries like Nigeria and the Bahamas have already started using CBDCs, other countries like China and Ghana are piloting them.

BOT supports CBDC, not cryptocurrency

As central banks increasingly embrace the idea of ​​introducing a national digital currency, they are still expressing disapproval and distrust of cryptocurrencies.

Tansanguan noted that the BOT intends to use its CBDC to cut funding costs and not compete with cryptocurrencies or stablecoins.

Earlier this month was BOT alarm Local banks and financial institutions shouldn’t trade cryptocurrencies, adding that the agency does not endorse the use of cryptocurrencies as a medium of exchange for goods and services.

In another report, the Indonesian central bank announced plans to introduce a CBDC against cryptocurrencies like Bitcoin and Ethereum.

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