Thailand’s central bank will begin testing use of its retail digital currency for the general public in the second quarter of next year before fully implementing it over the next 3-5 years, an assistant governor has announced.
The retail central bank digital currency (retail CBDC) is aimed at providing access to convenient and secure financial services, Vachira Arromdee told a briefing.
“It will not affect the Thai financial system,” she added.
The Bank of Thailand is seeking public opinions by June before developing the digital currency, she said.
A retail CBDC is a digital form of money issued by a central bank comparable to physical banknotes. It can be used in financial transactions both online and offline.
Meanwhile, The Nation Thailand reported that China and the United Arab Emirates have joined the Bank of Thailand (BOT)’s joint central bank digital currency (CBDC) project.
Named Project Inthanon-LionRock, the cross-border digital transaction scheme is a joint project with the Hong Kong Monetary Authority (HKMA).
On Tuesday (March 30), the People’s Bank of China and the Central Bank of the United Arab Emirates announced they had joined the project, which has now been renamed the Multiple CBDC Bridge (m-CBDC Bridge).
The m-CBDC Bridge project will use distributed ledger technology (DLT) to develop a prototype for real-time cross-border foreign exchange transactions on a 24/7 basis, said its four central-bank members.
It will also encourage more central banks in Asia and other regions to jointly study the potential of DLT in enhancing the financial infrastructure for cross-border payments. T
he aim is to alleviate pain points in cross-border fund transfers, such as inefficiencies, high cost and complex regulatory compliance.
