The Central Bank of Thailand recently announced the testing of its CBDC and is currently using this currency for financial transactions with some large enterprises. In January this year, BOT successfully tested a powerful transfer of funds through CBDC, as part of the Inthanon project, which includes 8 financial institutions.
The digital currency of the Central Bank of Thailand will be secured by fixed assets such as Thailand’s international reserve. Thanks to this, it will behave like a stablecoin.
Although CBDCs were initially treated as cryptocurrencies issued by the central bank, they have more to do with digital fiat money than with bitcoin. Nevertheless, they are powered by blockchain technology, just like cryptocurrencies.
Thailand will start CBDC testing in September in cooperation with Hong Kong
BOT president – Vachira Arromdee, announced that Thailand plans to enter the next, third phase of the development of its digital currency and expand its activities. As a result, in September 2020, Thailand will use the CBDC to deal with Hong Kong’s monetary authorities.
Now that Thailand is taking decisive steps in the development of the central bank’s digital currencies, it seems that Asian countries can become leaders in the development of CBDC.
In addition, BOT wants to introduce digital Baht into the public space in the future to reduce transaction costs. Before this happens, however, comprehensive research is needed to see if it will have negative effects on commercial banks.
China is increasingly developing its CBDC
As Vachira noted, the introduction of the digital yuan into China’s public space has not yet affected the Chinese financial system.
China is currently the leader when it comes to CBDC and is increasingly starting to introduce its digital yuan on new levels. In the near future, tests will start on the food supply platform operated by Tencent. The platform currently has over 435 active millions of users.
What is your opinion on this subject? Will Asia be the leader in state digital currencies? Leave your opinion in the comments.