Thailand’s central bank is calling for public opinion on its proposed plan to launch an independent digital currency in the next five years.
When is it scheduled
The Bank of Thailand has set its agenda for a retail central bank digital currency with pre-test protocols planned to start in the second quarter of 2022.
The central bank of Thailand called for public comment on the proposed CBDC roadmap in a press release on Friday.
The central bank released a preliminary report detailing the CBDC thesis as part of its plans. Explaining the motivation to create a CBDC, the Bank of Thailand argued that the success of private stablecoins poses risks to “monetary sovereignty and financial stability”.
As a matter of fact, in March Thailand’s leading bank made Thai Baht Digital (THT) illegal, a stablecoin mined by Terra.
Interaction with stakeholders
According to the Bank of Thailands report, the central bank will begin CBDC development efforts by engaging with stakeholders to identify the opportunities, risks and challenges associated with an independent digital currency, and then conduct a cost-benefit analysis.
As part of its initial result, BoT will reveal the reason it left the door open for a CBDC, and therefore the reason for initiating digital baht testing protocols.
Speaking at Friday’s briefing, Vachira Arromdee, vice president of BoT’s financial markets operations group, said the central bank sees CBDCs as a way to gain greater access to financial services in the country.
According to Arromdee, the digital baht project can be implemented in the next three to five years. Members have until June to submit their comments on BoT’s CBDC plans.