Thailand started CBDC tests in preparation for the official launch

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Jul 16, 2020
  • Thailand's central bank is ready to start CBDC tests with local businesses.
  • The bank said that there are still concerns about its impact on traditional banking, but also strong benefits.
  • BOT is still not ready for broad use of its CBDC, but it is willing to try with businesses and HKMA.

As China — currently the leading nation in regards to central bank digital currency (CBDC) development — approaches the end of testing, many other countries appear to be rushing to catch up.

Only days ago, Japan’s authorities revealed that they will consider adding CBDC to the country’s economic plan. A few weeks back, the Bank of Japan stated that it plans to start CBDC tests.

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Meanwhile, the Bank of England is also considering its own CBDC, while the EU central bank is already planning theirs. However, the CBDC craze does not stop there, as Thailand just announced CBDC tests.

Thailand starts CBDC testing with businesses

According to Thailand’s central bank, the Bank of Thailand (BOT), the bank is ready to deploy its CBDC and start conducting tests with local businesses. This is the third phase of the project’s development, and the next one will be a mainstream launch.

The announcement was published by The Nation Thailand, which quoted the central bank’s governor, Vachira Arromdee. She said that “The central bank is also thinking about expanding use of the cryptocurrency to the general public, but a comprehensive study must be completed before taking such action.

For now, the bank is only using its CBDC for corporate financial transactions. However, she added that the bank plans to use the coin for transactions with the Hong Kong Monetary Authority in September of this year.

There are still concerns of CBDC’s impact on commercial banks, but it would be helpful to cut costs of transactions. In addition, she also noted that China’s real-world CBDC tests have shown that the public use of crypto did not endanger the financial system.

Like all other CBDCs, BOT’s coin will also act as a stablecoin, backed by a basket of various assets, including fiat currencies. However, the bank is still looking into the pros and cons of a broad use via crypto wallets. Businesses, on the other hand, appear to be ready for adoption.

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