The Central Bank of Thailand also known as the Bank of Thailand (BOT) plans to begin the trial of its Central Bank Digital Currency (CBDC) in a retail setting.
According to the Deputy Governor of the bank, Ms. Vachira Arromdee, Retail CBDC has the potential to be the foundation of future financial systems.
Based on this assumption, BOT considers it necessary to expand the scope of the Retail CBDC development beyond its present state to a pilot phase. During this pilot phase, there will be real-life applications of the Retail CBDC in real-time. The phase will be covered in collaboration with the private sector on a limited scale.
In the first place, many central banks are laying much emphasis on the development of Retail CBDC. Specifically, BOT is among the few who recognize the significance of CBDC as a recent financial tool. The Thailand central bank believes that CBDC can provide more opportunities for individuals and businesses including the general public.
The unending list of opportunities encompasses providing more enormous and convenient access to a series of financial services, invariably at a lower cost.
Formerly, BOT took part in Wholesale CBDC projects as well as Proof-of-Concept Retail CBDC testing with corporates. Times are changing to accommodate more comprehensive Retail CBDC development. In light of this, the financial giant is gradually moving with the trend.
The Retail CBDC Pilot Study Tracks
With the intention of a pilot phase, there will be two tracks to its achievement.
The first, is the Foundation track where an assessment will be carried out to ascertain the safety and efficiency of the system. Its technological design will also be examined in this track. Particularly, trading activities like paying for goods and services with CBDC will be conducted.
Next, the Innovation track will target the programmability. This will facilitate the development of innovative use cases for CBDC.
With this track, BOT will develop a design of CBDC that will fit perfectly into its future context. A CBDC Hackathon will take place welcoming both the private and public sectors to participate, so long they apply from 5 August to 12 September 2022.
Additionally, the pilot study will only involve a selected few, therefore, the public is advised to be cautious of fraudsters who might claim to be involved in the process.
Image source: Shutterstock