TL; DR Breakdown
- Bank of Thailand moves CBDC pilot test to Q4 2022
- BOT says it wants the CBDC to be efficient
- Banks are supporting the development of CBDCs
Thailand has announced that the scheduled testing of its CBDC has been moved forward by months into the final quarter of next year. According to a statement from the Bank of Thailand, the scheduled testing was supposed to go live by the second quarter by has now been moved further. In a report by Reuters that confirmed the postponement, the media outlet mentioned that the country was mulling the creation of its CBDC, which could eventually rival physical cash when it eventually undergoes full launching.
Bank of Thailand says it is focused on efficiency
In the statement that Reuters quoted, the Bank of Thailand refused to mention a specific reason for pushing the pilot date forward. But from all indications, things are looking like the country did not meet one of the targets earmarked for launching the digital currency. The premier bank intends to roll out its CBDC to help foster transactions among people in different professions who offer goods and services for trade.
During the previously earmarked phase for testing, the Bank of Thailand pointed out that it has already consulted various companies that will partner with them for the testing. Also, the bank mentioned that the testing would take place online and offline as it hopes to onboard every citizen. Giving a small insight into the progress, the deputy director of the Bank of Thailand, Kasidit Tansanguan, said that the bank’s goal is to ensure efficiency. This will happen after they have a round table discussion with various members.
Banks are supporting the development of CBDCs
The CBDC era was introduced after the coronavirus pandemic that saw the world shut off from all forms of cash payments. While people were stuck in their homes, they could only carry out transactions online. As a measure to help limit cash usage, most countries have been introducing CBDCs or currently testing them. Nigeria is one of the few countries whose CBDC has gone live, even though there have been issues related to the CBDC.
China has continued to test its CBDCs, with a date for an official launch nearing. Although banks are encouraging the development of CBDC, they have been frowning against crypto. For instance, the Bank of Thailand recently mentioned that its CBDC would not compete with digital assets but help people make transactions via an online version of its physical cash.