Thailand to test retail central bank digital currency in second quarter of next year

Vachira Arromdee, deputy governor of the Bank of Thailand, said the central bank plans to test a retail central bank digital currency as an alternative payment option in the second quarter of 2022.

Arromdee said at a press conference that a retail central bank digital currency would not affect its monetary policy or the money supply in the system.

She also added that the pilot project will evaluate the use of CBDC in cash-like activities on a limited scale, such as accepting, converting or paying for goods and services. The Bank of Thailand (BOT) said in a statement that it expects the demand for CBDC to gradually increase and could become an alternative payment option, replacing cash and electronic money to a certain extent. The BOT will evaluate the results and risks of the test to ensure that the CBDC is beneficial to everyone and will not undermine future economic and financial stability. (Reuters)