Bank of Thailand to begin central bank digital currency tests in 2022

Bank of Thailand to begin central bank digital currency tests in 2022

The Bank of Thailand has set its agenda for a retail central bank digital currency with preliminary testing protocols scheduled to begin in Q2 2022.

Thailand’s central bank made this known in a press release issued on Friday calling for public comments on the proposed CBDC roadmap.

Our top trading bots

As part of its plans, the central bank published a preliminary report detailing its CBDC thesis. Explaining its motivation for creating a CBDC, the Bank of Thailand argued that the success of private stablecoins poses risks to “monetary sovereignty and financial stability.”

Indeed, back in March, Thailand’s apex bank deemed Thai Baht Digital (THT) — a stablecoin issued by Terra — to be illegal. At the time, the central bank cited the country’s law prohibiting any other entity save the central bank from issuing currency in Thailand.

According to the Bank of Thailands’s report, the central bank will begin its CBDC developmental efforts by engaging with stakeholders followed by cost-benefit analysis to ascertain opportunities, risks and challenges associated with a sovereign digital currency.

For the BoT, “flight to quality” i.e. consumers preferring CBDCs to fiat currency during market upheavals, remains a major risk factor. Thus, the central bank is proposing the addition of withdrawal limits among other transaction friction protocols to reduce the possibility of bank runs whenever periods of market uncertainty emerge.

As part of its preliminary conclusion, the BoT revealed that it was leaving the door open for a CBDC hence the reason for kickstarting its digital baht testing protocols.

Speaking during the Friday briefing, Vachira Arromdee, assistant governor of the financial markets operations group at the BoT, said that the central bank sees CBDCs as a means of providing greater access to financial services in the country.

According to Arromdee, the digital baht project could be implemented within the next three to five years. Members have until June to submit their comments on the BoT’s plans for a CBDC.

As previously reported by Cointelegraph, the BoT is also part of a CBDC coalition involving Hong Kong, China, and the United Arab Emirates. Indeed, regional CBDCs are becoming a noticeable trend in the emerging sovereign digital currency ecosystem as participants look towards cross-border interoperability.

The Eastern Caribbean Central Bank recently launched a regional CBDC for four of the eight nations in the Eastern Caribbean Currency Union.

Continue reading on Cointelegraph
GameStop saga paves the way for a new decentralized financial order
Every significant transformation comes with a new toolset, one that is always surprising at the time and obvious in hindsight. Bitcoin (BTC), climate change...
EOS Climbs 11% In Bullish Trade
Investing.com - EOS was trading at $7.0552 by 22:40 (02:40 GMT) on the Investing.com Index on Wednesday, up 11.04% on the day. It was the largest one-day...
DOGE passes Uniswap and Litecoin to become 8th largest cryptocurrency by market cap
The price of Dogecoin has surged seemingly without any push from prominent figures on social media or major developments in the project. According to data...
MicroStrategy announces Bitcoin bonuses for board of directors instead of cash
Business intelligence firm MicroStrategy announced on Sunday that its board of directors will now receive bonuses in Bitcoin (BTC) instead of cash. A modified...
Ark Invest and JPMorgan expect Bitcoin to hit $130K-$470K
JPMorgan expects Bitcoin (BTC) to reach $130,000, while Ark Invest anticipates the market valuation of BTC to surpass that of gold.The optimistic macro...
Ethereum breaks out against Bitcoin: Is a strong bull rally in the works?
Ether's (ETH) price has broken out for the first time in 23 days in its Bitcoin (BTC) pair. It follows a high-profile announcement from Visa to use USDC,...
Digital ruble is ‘highest form of money’, Russian Bitcoin critic says
Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, believes that the country’s not-yet-launched digital currency is the...
Litecoin Falls 11% In Selloff
Investing.com - Litecoin was trading at $173.460 by 03:57 (07:57 GMT) on the Investing.com Index on Thursday, down 10.76% on the day. It was the largest...
Fidelity applies to launch a bitcoin ETF
(Reuters) - Fidelity applied on Wednesday to launch an exchange traded fund to track the performance of bitcoin, the latest move on Wall Street to embrace...
Experts say new South Korean crypto rules will create a monopolized market
South Korea is heading into a new period for its crypto industry, with stringent new rules coming into effect on March 25 that will require all cryptocurrency...
SBI Crypto's Bitcoin mining pool goes public
SBI Crypto, the mining subsidiary of Japanese financial conglomerate SBI Holdings, has opened its mining pool to the general public. As one of the fruits...
Financial Services Giant Fidelity Launches Crypto Trading Platform
Fidelity Investments, a financial services titan with more than $7 trillion in client assets, has leapt onto cyber-money bandwagon too. This week the company...
Elon Musk Unveiled How Much of Bitcoin He Owns
Back in November 2017, former SpaceX’s employee Sahil Gupta claimed in his blog that the real Satoshi Nakamoto – the creator of world’s first crypto-coin...
Back to Life: Market Goes Through Rehab With $12K Bitcoin and Ripple on Top
It looked like the end of the world, when bitcoin and its brethren started despairingly crashing down on January 16. No one expected such a massacre...
First Online Cinema On the Blockchain. White Rabbit Cooperates With Streaming Services
White Rabbit is a plug-in for the browser that offers a transparent and instant monetization model for publishers, investors, actors; as well as high-quality...