Bank of Thailand about to trial CBDC with local businesses as part of the third phase of development
As China – currently, the leading nation involved in central bank digital currency development – is about to end its testing, many other countries seem to be catching up fast. In particular, the Bank of Thailand (BOT) is ready to deploy its central bank digital currency (CBDC) to local corporations.
The Bank of Thailand ready to deploy its central bank digital currency (CBDC) to local corporations
Just a few days ago, the Japanese government revealed that it would consider adding CBDC to the country’s economic plan. A few weeks back, the Bank of Japan announced that it planned to begin CBDC trials.
The Bank of England, meanwhile, is also considering its own CBDC, while the EU central bank has been planning them. However, the CBDC fever does not stop there, as Thailand has just announced CBDC trials.
According to Thailand’s central bank, the Bank of Thailand (BOT), the bank is ready to deploy its CBDC and start testing with local businesses. This is the third phase of the project’s development, and the next phase will be a mainstream launch.
The announcement was published by The Nation Thailand, which quoted Vachira Arromdee, BOT assistant governor.
“The central bank is also thinking about expanding the use of the cryptocurrency to the general public, but a comprehensive study must be completed before taking such action.”
Vachira Arromdee, BOT assistant governor
Currently, the bank only uses CBDC for corporate financial transactions. However, she added that the bank plans to use the currency to trade with the Hong Kong Monetary Authority in September this year.
There are still concerns about the impact of CBDCs on commercial banks, but it will be helpful to cut transaction costs. Besides, she noted that China’s real-world CBDC tests have shown that the use of public cryptocurrencies does not endanger the financial system.
Like all other CBDCs, the BOT coin will also act as a stablecoin, backed by a basket of various assets, including fiat currencies. However, the bank is still considering the pros and cons of widespread use through e-wallets. Businesses, on the other hand, seem ready to adopt.
Even though more central banks showed interest in CBDCs, China has advanced the most in this area. As AZCoin News reported, China’s CBDC would be tested on a platform operated by a Tencent business operating a food delivery network.
- Japan’s Government Is Seriously Considering Issuing A CBDC
- China Wants To Trial Its Digital Yuan DC/EP On Online Food Seller Meituan-Dianping