Thailand’s central bank has announced plans to start working on a Central Bank Digital Currency (CBDC) in 2022, as well as how it will test the digital currency.
On Friday, the bank issued a press release in which it asked citizens of the country for feedback on the digital currency project’s roadmap.
Thailand’s central bank has also released a paper examining the CBDC thesis. The report explains why a digital currency is needed and how thriving private stablecoins such as USDT and BUSD pose a challenge to monetary sovereignty and financial stability. In the paper, the bank also notes that the first step toward developing the CBDC would be to involve relevant stakeholders. They will consider the benefits of digital currency and assess the currency’s risks and opportunities.
What is the aim of a Thailand CBDC?
The nation, according to Vachira Arromdee, assistant governor of the BoT’s financial markets operations group, needs a CBDC to improve access to financial services. He expects that the CBDC will be ready in three to five years, and he gives members three months to respond to the proposal.
Hong Kong, China, and the United Arab Emirates form the BoT, which is a CBDC alliance. As regional CBDCs become more common, the coalition is considering a cross-border CBDC.
The regional central bank in the Eastern Caribbean recently introduced a regional CBDC for some of the Union’s countries. Similarly, in Europe, preparations for a regional CBDC are underway, as European Union Central Bank Governor Christine Lagarde recently said in a Bloomberg interview.
Largesse predicted that a European CBDC will be ready by 2025 if the project is approved, despite a slew of roadblocks impeding the digital currency’s growth.