According to Foresight News, Jan Nieuwenhuijs, a gold market analyst, has suggested that the continuous gold purchases by the Central Bank of Thailand could indicate the country's preparation to use the CBDC cross-border settlement project, mBridge, to address imbalances in a CBDC-dominated trading system.
Nieuwenhuijs noted that a few days before the release of the minimum viable product (MVP) for mBridge, China and Thailand signed a bilateral local currency trading cooperation framework. Both China and Thailand are among the first members of the mBridge platform.
The analyst's observations suggest that the Central Bank of Thailand's gold buying spree could be a strategic move in anticipation of the potential challenges that might arise from the implementation of the CBDC cross-border settlement project. This development could have significant implications for the future of digital currency and cross-border transactions.