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Thailand CBDC Trial to Test Use as Cash Substitute
The CBDC will be used for "cash-like activities within a limited scale," such as paying for goods and services.
Von Jamie Crawley
The Bank of Thailand said its central bank digital currency pilot program planned for the second quarter of next year will test its use as a cash-like payment system.
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- The central bank will test the CBDC for "cash-like activities within a limited scale," such as paying for goods and services, Assistant Governor Vachira Arromdee said Thursday.
- A CBDC could become an alternative payment option in the future as a partial substitute for cash and e-money, with demand increasing over time.
- Involvement will be sought from the private sector and technology developers, with the Bank of Thailand deciding the criteria for participation.
- The bank said that the CBDC would be non-interest bearing and would be distributed to the general public by intermediaries like financial institutions. Conditions or limits on the amount of CBDC that can be held will also be established.
- Arromdee said in a news conference that a CBDC wouldn't affect monetary policy or money supply in the system, according to a Reuters report.
Read more: Ukraine’s President Signs Law Allowing Central Bank to Issue a CBDC
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