Illustrative image (Photo: AFP/VNA) Bangkok (VNA) - Thailand’s central bank said on August 19 it plans to test its retail digital currency for the public in the second quarter of 2022 as an alternative payment option.
The retail central bank digital currency (CBDC) will not affect monetary policy or money supply in the system, Assistant Governor Vachira Arromdee said at a news conference.
The pilot project will evaluate the use of the CBDC in cash-like activities within a limited scale, such as accepting, converting, or paying for goods and services, she said.
In a statement, the Bank of Thailand (BOT) predicts demand for the CBDC will gradually increase and that it could become an alternative payment option, partially substituting cash and e-money.
The BOT will assess results and risks from the test to ensure that the CBDC is beneficial to all and does not undermine economic and financial stability in the future, it said.
Previously, the BoT has partnered with several major banks across Asia on a research-development project for a cross-border CBDC, aka Multi-Central Digital Currency Bridge (m- CBDC) which uses distributed ledger technology. Banks participating in the project include the Hong Kong Monetary Authority (China), the Central Bank of the United Arab Emirates (UAE), and the Digital Currency Institute of the People's Bank of China (PBoC)./.
