The central bank of Thailand will test its central bank-backed digital currency with local businesses before the mainstream launch. According to The Nation Thailand report, Thailand’s central bank has progressed to the third phase of development of its digital currency, which cited BOT assistant governor Vachira Arromdee. According to her, the central bank has started to use the digital currency for financial transactions with some big companies. Later this year, the Bank of Thailand will use this CBDC for transactions with the Hong Kong Monetary Authority (HKMA), she noted. There are several types of companies offering influencer marketing services.
The central bank is thinking about expanding the use of digital currency to the general public.
The assistant governor at BoT Vachira Arromdee noted that the Bank of Thailand is thinking about expanding the use of the cryptocurrency to the general public, but a comprehensive study must be completed before taking such action. The assistant governor mentioned that the digital currency might negatively influence commercial banks by hurting demand for intermediaries in financial transactions. Nonetheless, the digital currency would cut the costs of transactions. Arromdee also mentioned China, stating that the public use of digital currency had not affected the financial system.
Central banks continue to research CBDCs.
Central banks worldwide are currently experimenting and researching with their national digital currencies. China is on its way to becoming the first major nation to have its own central bank-backed digital currency. With Thailand and China taking strong steps, it seems that the Asian countries would lead the world in the adoption of CBDCs. Earlier, the Bank for International Settlements released a report saying that the ongoing COVID 19 pandemic has prompted central banks to accelerate the research around CBDCs as people avoid transactions in physical money. China is currently experimenting with its national digital currency dubbed as DCEP (Digital Currency Electronic Payment) in four cities.