It is expected that the pilot testing process will achieve efficiency and help reduce transaction costs.
The Bank of Thailand is partnering with three institutions to launch a retail central bank digital currency (CBDC), with the goal of increasing the efficiency of financial transactions. Three payment service providers, Ayudhya Bank (Krungsri), Siam Commercial Bank (SCB) and 2C2P (Thailand) Co, have been selected to run the CBDC test.
The digital currency will be inspected by Krungsri employees and around 100 trading points near Krungsri headquarters. According to central bank estimates, the number of employees is expected to increase to 2,000 with a total number of participants of 10,000. The pilot period will last from June to August this year.
Krungsri has not placed any limits on transaction values, instead focusing on stabilizing the payment system, especially during peak times. CBDC users will be able to pay for goods and services, while another possible project is the payment of social benefits in digital baht.
According to Krungsri CEO Sam Tanskul, the adoption of the digital baht will benefit the country's digital economy in the long term. The Bank of Thailand sees this pilot project as educational and a step towards full implementation.
Thai authorities began exploring the CBDC sector in May 2019 when the Inthanon-LionRock Project was initiated and an MOU was signed by the Hong Kong Monetary Authority and the Bank of Thailand to study its application. of CBDC for cross-border payments.
The article ‘Thailand Launches Digital Baht for Retail Use’ was first published on Crypto Reporter.
