The BOT (Bank of Thailand) is set to start testing its retail CBDC (central bank digital currency) in the second quarter of 2022.
The central bank wants to test the use of a digital baht for the general public within 2022 before fully implementing the digital currency over the next 3-5 years.
BOT Financial Markets Operations Group Assistant Governor, Vachira Arromdee, said the retail CBDC is aimed at providing access to convenient and secure financial services without affecting Thailand’s financial system.
“Retail CBDC is a digital form of money issued by the central bank comparable to physical banknotes, and can be used in financial transactions both online and offline,” Arromdee said. “Moreover, retail CBDC is easily portable and has the potential to be used in various innovative financial services.”
Meanwhile, the BOT has published paper on retail CBDC in Thailand, and seeking public input before developing the digital baht.
The paper outlines key issues related to retail CBDCs including benefits, opportunities, challenges, risks, industry status, and Thailand’s financial landscape.